NEW DELHI: In a single-largest non-performing asset (NPA) sale ever in the Indian banking sector, private sector lender Yes Bank has announced the completion of the assignment of its NPAs totalling `48,000 crores of principal outstanding (adjusted for recoveries since then) as of March 31, 2022, to J C Flowers Asset Reconstruction Private Limited (JC Flowers ARC).
The transaction allows the bank to benefit from recoveries in excess of the current considerations, the bank said in a statement. “The transfer of the stressed assets marks the single-largest NPAs sale ever in the Indian banking system. Coupled with the recent capital raise, this is yet another strategic milestone in the turnaround journey of Yes Bank,” said Prashant Kumar, MD & CEOof Yes Bank.
“This transaction would strengthen our balance sheet, allowing the bank to focus on growth and profitability. JC Flowers platform will serve as a model and will allow Indian financial institutions to monetise considerable interest of global investors in the distressed credit markets,” he added.