September 24, 2022
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Yes Bank to approve JC Flowers as buyer for its $6 billion stressed loan portfolio

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MUMBAI: Non-public lender Yes Bank is more likely to approve the switch of burdened belongings price Rs 48,000 crore ($6 billion) to non-public fairness agency J C Flowers at its subsequent board assembly, mentioned a supply with direct information.
A rival consortium led by non-public fairness agency Cerberus and Asset Reconstruction Firm of India withdrew its bid after submitting an expression of curiosity earlier this 12 months, two sources mentioned.
“We evaluated the mortgage accounts rigorously and realised that there have been so many fraud-hit and different problematic accounts that restoration would have been a problem,” mentioned the second supply.
J C Flowers had submitted an preliminary bid of Rs 11,183 crore for your entire burdened mortgage portfolio of Rs 48,000 crore. The Cerberus-ARCIL consortium was imagined to submit a competing bid by September 7 however they withdrew, the sources mentioned.
“As soon as the board approves the J.C. Flowers bid, it’s going to take a few month for the paperwork to be accomplished and the belongings to be transferred,” the primary supply mentioned.
Sure Financial institution, J C Flowers, Cerberus and ARCIL didn’t instantly reply to an e mail request searching for remark.
Lender Sure Financial institution believes that its gross unhealthy loans can come right down to 2% from 13.4% in June quarter after transferring the unhealthy loans to the brand new asset reconstruction firm, it mentioned earlier.
The financial institution had already provisioned for over 80% of the whole mortgage worth which can now be transferred to J.C. Flowers.
The switch of burdened loans away from its guide is a vital step for Sure Financial institution and comes greater than two years after the central financial institution needed to step in to take management of the financial institution after a dramatic rise in poisonous belongings alarmed buyers and depositors, posing a systemic threat to banking sector.
The lender raised capital price $1.1 billion by promoting as much as a ten% stake to Carlyle Group and Creation Worldwide in August. The boldness capital has additionally helped its inventory stand up by practically 40% since June 30.

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