Yes Bank expects to close JC Flowers deal by Nov | The Financial Express

Yes Bank expects to close JC Flowers deal by Nov

The lender had also vetted the acquisition of 20% stake in the ARC.

Yes Bank expects to close JC Flowers deal by Nov
On credit growth, the bank is expected to grow at 15%, Kumar said on the sidelines of the FIBAC 2022 event. (IE)

Yes Bank is expecting to close the deal involving the transfer of stressed assets to JC Flowers ARC by the end of this month, Prashant Kumar, MD & CEO of the bank, said, adding that it is undergoing certain legal process.

Earlier, the bank had approved transfer of its stressed assets to JC Flowers ARC after accepting its bid of Rs 11,183 crore. The deal is expected to reduce bad loans from its balance sheet. The bank’s gross non-performing asset (NPA) ratio stood at 12.9% as of September 30 while net NPA ratio was at 3.6%. After the transfer, stressed assets will remain in investment book of the bank. It will have to make ageing provisions for those accounts, Kumar had previously said in a media call.

Also read: Punjab National Bank raises FY23 credit growth prediction

The lender had also vetted the acquisition of 20% stake in the ARC. However, it will initially acquire 9.99% and then approach the Reserve Bank of India (RBI) at the time of increasing the stake, as central bank permission is not required for the initial stake.

On credit growth, the bank is expected to grow at 15%, Kumar said on the sidelines of the FIBAC 2022 event.

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First published on: 04-11-2022 at 05:40 IST