Yes Bank plans to invest Rs 350 cr in JC Flowers; Raise core capital of $1 billion in FY23

MUMBAI: Yes Bank will invest up to Rs 350 crore for a possible 20 per cent stake in asset reconstruction company JC Flowers, which has emerged as the base bidder for the Rs 48,000-crore lender’s bad loans.
The private sector lender is planning to raise up to $1 billion in FY13 to expand its core capital base after the NPA challenge is over, its managing director and chief executive Prashant Kumar told reporters here on Monday.
The bank’s core equity ratio currently stands at 11.5 per cent and will cross 14 per cent after raising capital, he said, adding that though market conditions are not conducive yet, it wants to end the process in FY23. on one’s own.
Kumar said he feels that transferring gross non-performing assets of over Rs 48,000 crore – that is, inherited corporate debt that has gone bad – to the Asset Reconstruction Company (ARC) will take care of the biggest challenge facing the bank. It will be reduced as the NPA is less than 2 per cent from the current 14 per cent.
He also said that the bank has started the Swiss challenge process for the highest bidder for the NPA stock and JC Flowers will have the right to match the price.
Asked about the challenges being faced by JC Flowers, Kumar said ownership issues in the unit have been “resolved” to the satisfaction of Yes Bank.
He said the entire process of getting the best bidder under the Swiss challenge and transferring the assets to the ARC would take up to 75 days.

Leave a Comment