Yes Bank shares surge after bank concludes transfer of Katerra India Exposure

Yes Bank’s share price was up by more than 2% during early trading hours on Wednesday morning as the lender announced that the transfer of the lender’s exposure in Katerra India Private Limited to Prudent ARC has concluded successfully.

The Bank revealed that it has received cash consideration of ₹203.40 crore from this account transfer. Earlier on January 20, this year, Yes Bank had invited Expression of Interest for the sale of the identified stressed loan exposures through a Swiss Challenge Method auction, following the guidelines as provided under the Reserve Bank of India’s Master Direction on Transfer of Loan Exposures, 2021.


In a regulatory filing with the stock exchange on Tuesday, Yes Bank said, “The Bank has now concluded the transfer of exposure of the Bank in Katerra India Private Limited to Prudent ARC Limited, and has received cash consideration of ₹203.40 Crores in relation to the same.” Katerra India Private Limited had a debt of ₹521 crore with the Bank and effectively entered into its corporate insolvency resolution process, last year.

If sources are to be believed, the lender has managed to recover about 39% of exposure from Katerra. Katerra India is the Indian subsidiary of the US-based company Katerra. The US-based Katerra entities had filed for bankruptcy protection in the US bankruptcy court in 2021, including its Cayman island entity.

The successful transfer of the bank’s exposure seems another achievement following the Bank’s landmark sale transaction in December last year, where Yes Bank had sold stressed-assets loan portfolio of about ₹48,000 crore to JC Flowers ARC. This was the single-largest NAPA transaction deal in India’s banking history.