around $1 billion this fiscal year, the bank’s chief executive officer announced on Monday.
Following the lender’s announcement that it has chosen an asset reconstruction company affiliated with private equity firm JC Flowers as the base bidder for the sale of bad debts totaling 480 billion rupees.
The joint venture business would make payments for the bad loan book according to the 15:85 arrangement, with 1,800 crore, or 15% of the agreed upon sum, being paid upfront in cash to Yes Bank. As the ARC collects money from defaulters, the remaining amount will be paid in security receipts that can be redeemed.
In response to the government and Reserve Bank of India putting in place a specific plan to save Yes Bank, the bank announced on June 8 that it has started the process of withdrawing from the rehabilitation scheme established two years prior.
The 49,000 crore bad loan book also includes soured investments and so-called technical write-offs of 17,000 crore.
