arc: Yes Bank to partner JC Flowers ARC to sell Rs 48k-crore bad loans

Personal lender on Friday stated it has signed a time period sheet with JC Flowers Asset Reconstruction Co as its JV accomplice on the market of dangerous loans value Rs 48,000 crore. Sure Financial institution will contribute fairness to the ARC, which can initially cope with Sure BankRs s soured property earlier than increasing its ambit.

“The financial institution has signed a binding time period sheet with JC ARC LLC and JC Flowers Asset Reconstruction Personal Ltd for strategic partnership in relation to sale of recognized careworn loans of the financial institution,” Sure Financial institution stated in a regulatory submitting.

ET had first reported on Might 20 that Sure Financial institution has picked JC Flowers ARC as its JV accomplice.

Sure Financial institution stated it has determined that the JC Flowers ARC would be the base bidder for a proposed sale of an recognized careworn mortgage portfolio aggregating as much as Rs 48,000 crore.

The financial institution stated the term-sheet between the 2 is efficient July 15. As per the RBI pointers, Sure Financial institution is proposing to run a clear bidding course of on Swiss Problem foundation on the market of such portfolio utilizing the JC Flowers ARCRs s bid as the bottom bid.

“Organising of an ARC will not be solely to resolve our NPAs, we see this as a big enterprise alternative,” Prashant Kumar, MD, Sure Financial institution, had advised ET in an interview in Might this yr. “We’ve got a really massive careworn asset e book; resolving this inside the financial institution would take a protracted time period. Optically, when any investor is a financial institution which has 14% GNPA as in comparison with a financial institution which doesnRs t have this subject, the valuations look completely different. The opposite side is, quite a lot of administration bandwidth goes into recoveries, which ought to be centered on rising the financial institution.”