YES Bank is actively looking to sell its non-performing assets worth Rs 32,344 crores to asset reconstruction companies and other potential investors and has appointed E&Y to advise it on the sale. Several asset reconstruction companies (ARCs) have been sounded off by E&Y to submit their bids for the book and hence they will be submitting their bids soon.
YES Bank has a gross NPA (GNPA) of Rs 32,344 crores and has already made provisions for Rs 24,476 crore which represents 76 percent of its gross NPA (GNPA). GNPA on books post such provisions is now only Rs, 7,868 crores. The sale of the NPA book will help the bank regain its lost status in the banking industry, which was scarred by a scandal which involved its former promoter, Rana Kapoor.
According to the information received from the sources, YES Bank’s offer to ARC’s is aimed at helping the bank recover at least 15 percent of the amount that is Rs 5000 crores upfront and the remaining 10 percent that is Rs 3000 crores may be a potential recovery through deferred payments.
According to the sources, NPA sale proposal has been approved the board of YES bank to enable its speedy recovery and help it clean up its balance sheet.
