YES Bank's plan to sell Rs 12,000-cr bad loans to ARC faces delay

RBI wants the bank to avoid any conflict of interest with the ARC as YES Bank plans to hold a minority stake in the same ARC

YES Bank
Premium

YES Bank’s plans to sell the bad debt comes at a time when for the financial year ended March 2022, the bank reported a profit of Rs 1,066 crore after two successive years of heavy losses.

Dev Chatterjee Mumbai
The Reserve Bank of India (RBI) and YES Bank are in discussions over the bank's plans to sell bad loans to an asset rec¬o¬nstruction company (ARC).

YES Bank is planning to sell its bad loans worth Rs 12,000 crore to the ARC to be set up by American financial powerhouse JC Flowers and also hold a stake in the new ARC.

The regulator wants the bank to avoid any conflict of interest with the ARC as YES Bank plans to hold a minority stake in the same ARC. The Swiss challenge to the offer made by JC Flowers is currently pending. JC

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 19 2022 | 2:31 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com