Yes Bank surges 5% as lender seeks buyer for distressed loan book

Shares of Yes Bank surged 5% to the day's high of Rs 21.30 on the NSE on Tuesday following news that the private lender is looking for buyers for its Rs 4,200 crore corporate and retail distressed loan book.

Almost a year after selling a Rs 48,000 crore distressed loan book to JC Flowers ARC, Yes Bank has put another portfolio of a little over Rs 4,233 crore crore on the block, The Economic Times reported.

The report said that Yes Bank has issued two separate notices to finance companies and asset reconstruction companies (ARC).


The asset sale to JC Flowers ARC is seen as the largest secondary market trade in the distressed loan segment.
The corporate loan portfolio comprises eight accounts with Rs 3,091 crore, while the retail portfolio is Rs 1142 crore.

While the sale of distressed loans to JC Flowers ARC was in a combination of cash and security receipts, this time, the bank is seeking offers only in cash.

The corporate loan portfolio comprises eight accounts.The corporate portfolio includes two UK-based companies - Prometheon Enterprises Ltd, UK with a debt of Rs 1,496 crore and Malvern Travels, UK with a debt of Rs 537 crore. Both are affiliates of Cox and Kings, the travel agency that went bankrupt.

The other company on the list is Katerra India Pvt Ltd, with a debt of Rs 521 crore. It was admitted for corporate insolvency recently, and Yes Bank is the sole lender.

It also wants to sell loans from Indrajit Power, a company promoted by the Miglani family of Uttam Galva. The company that provided power supply to Uttam Galva’s steel units, has outstanding debt of Rs 353 crore.

Yes Bank has put some real estate developers for sale, such as ATS Realworth Pvt Ltd with a debt of Rs 115 crore, ATS Infrastructure at 8 crores, ATS Township at Rs 26 crore, and Umritha Infrastructure at Rs 16 crore.

The bank invited expressions of interest (EoI) but refrained from setting a reserve price or a bidding date for the corporate loan book.

In a separate notice, it invited EoI for its retail portfolio of Rs 1142 crore by December 18.

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