12 entities express interest in Yes Bank’s ARC proposal

 12 entities express interest in Yes Bank’s ARC proposal

Last month, Yes Bank invited expressions of interest to set up asset reconstruction company

Yes Bank Ltd has received expressions of interest from a dozen investors to create an asset reconstruction company to the private sector lender as a minority partner, two people familiar with the development.

Brookfield Asset Management, Ares ASG, Oaktree Capital Management, JC Flower Flower, Vardhe Capital Investors Carvaux, Group Asia Asia, Resurgent India Fund Bain Capital, Apollo Global Management, Rohatyn Group and Silver Point Capital, people told condition of anonymity.

The Bank will now involve potential investors after discussions with interested companies EF, one of the two people said, adding that the selected investors will be invited to submit initial offers.

“The bank will examine the compatibility of the partnership. He hopes to complete the whole exercise by the end of October, “said the person.

An email sent to a bank spokesman Yes went unanswered at time of press.

Last month, Yes Bank invited expressions of interest to set up Asset Reconstruction Company (ARC). He hired as a process consultant. The Bank had stipulated that an investor should have a minimum of assets under management and funds deployed globally at least 5 billion. “The current set of arcs is not well capitalized, it has the ability to manage a large bad loan pool. The bank does not try to transfer individual assets; Instead, it will transfer all the asset pool, “said the second person.

Yes, the bank will follow a tendering process transparent once the new CRA is established, the person said, adding that she will call tenders for the whole of bad assets basin. This is the second attempt at YES Bank to set up a bow. The Reserve Bank of India rejected the first proposal because it did not want the Bank to be the majority shareholder of the CRA because of potential conflicts of interest. During the June quarter, yes, the bank reported the highest quarterly profit since December 2018 as a bad loan provisions. The profit jumped more than fourfold to € 206.84 crore a year ago. Its ratio of gross non-performing assets amounted to 15.6% at June 30, against 15.41% as of March 31.

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