Banking News

JC Flower ARC, Prudent submit bids for two NPAs of Yes Bank


JC Flower ARC has submitted a base bid for Indrajit Power for ₹353.6 crore of loans, while Prudent ARC has submitted a base bid for Katerra India for a loan of ₹521 crore. These loans have been put up for sale by Yes Bank.

In the initial bidding process, Prudent ARC made an offer of ₹165.6 crore for Katerra India, while JC Flower ARC proposed ₹133 crore for Indrajit Power. Interested bidders will have to submit offers at 7% mark-up to the base bid.

Agencies

Yes Bank has set the deadline for interested bidders to submit their offers by 7 February and plans to announce the highest bidder on 13 February.

Spokespersons of Yes Bank, JC Flower ARC, and Prudent ARC did not immediately respond to requests for comment.

The bank is looking to sell NPAs worth ₹4,200 crore spread across eight accounts, including these two and a ₹1,142 crore retail loan portfolio, on an all-cash basis. It has accepted individual offers for these accounts and is set to conduct a Swiss challenge on 7 February and announce the successful bidder on 13 February.

During the initial round of Expression of Interest (EOI), more than half a dozen buyers expressed their interest, submitting EOIs by 6 January. The accounts being considered for sale turned non-performing in or after 2019. Yes Bank has been looking to reduce its gross NPA, which currently stands at 2%, a notable improvement from 12.9% in Q2 FY23 and 14.7% in Q3 FY22. Additionally, the bank has decreased its net NPA ratios to 1%, down from 3.6% in Q2 FY23 and 5.3% in Q3 FY22.During the third quarter, Yes Bank had reported total recoveries and upgrades of ₹1,270 crore.



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