Investing Finances

YES Bank is just a few quarters away to Make a fresh start

Investing Finances

YES Bank to reduce gross non-performing assets to 1.5-2 percent, new investors can enter the bank.

Investing Finances

At least two new investors, each with a 10 percent stake, will enter the bank once the ongoing deal with US-based JC Flowers ARC to dispose of stressed assets ends.

Investing Finances

The bank recently revealed that it has abandoned its restructuring plan in March 2020.

Investing Finances

The bank recently revealed that it will exit the restructuring plan in March 2020. However, for shareholders, the trade embargo cannot be lifted until March 2023.

Investing Finances

A week ago, YES Bank was in talks with JC Flowers ARC to give its books a much-needed facelift.

Investing Finances

The bank launched the Swiss Challenge process to sell ₹48,000 crore worth of bad loans to ARC.

Investing Finances

The assets are expected to be bought by JC Flowers at a minimum price of ₹11,000 crore and the process may take 50-75 days to complete.

Investing Finances

Gross NPA, according to Prashant Kumar, MD and CEO of YES Bank, is expected to come down from 13.9% in FY22 to 1.5-2% once the sale of bad loans in ARC ends.

Investing Finances

Sources say the bank has advanced talks with several private investors, including Carlyle and Advent, to each take a 10 percent stake.

Investing Finances

YES Bank was able to hit the capital raising market in the December quarter as the Swiss distressed asset sale process was completed on schedule.

Investing Finances

Having returned to net profit in FY22 (₹1,044 crore) after two years of heavy losses, its balance sheet cleansed up and new investors setting foot, YES Bank is only a few quarters away from turning a new leaf.