Press Trust Of India / Mumbai Aug 25, 2008, 05:40 IST
Private sector lender Yes Bank plans to launch its asset reconstruction business by this year-end, a top bank executive said today.
The bank, which will hold a 29.5 per cent stake in the asset reconstruction company (ARC), has roped in three public sector banks besides a leading foreign bank as partners for the business.
“We will be signing the shareholders’ agreement within three months and expect all regulatory formalities to be completed by this year-end,” Yes Bank Managing Director and CEO Rana Kapoor said.
He, however, did not divulge the identities of the partner banks, except to say that “all four are big ones”. The bank has shortlisted candidates and will soon zero in on a CEO for the ARC, Kapoor said.
While the foreign bank will hold a 37.5 per cent stake, the three public sector banks will jointly hold 33 per cent in the company. The focus of the ARC in the initial two to three years would be on corporate entities as the turnaround opportunities here were greater.
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