Yes Bank has signed a Share Purchase Agreement (SPA) with JC Flowers Asset Reconstruction Company (ARC), acquiring a 9.9 percent stake in the ARC at Rs 11.43 per share on 28th November 2022. A subsequent acquisition of the additional shareholding of 10 percent is subject to requisite regulatory approvals.
YES Bank Acquired 9.9 percent stake in JC Flower ARC- Key Points
- Yes Bank’s board has approved the sale of stressed loans worth Rs 48,000 crore to JC Flowers.
- The bank intends to participate as a minority shareholder in the ARC.
- It is said that this will be ancillary to the main line of business of the bank.
- As of 31st March 2022, JC Flowers ARC had Rs 595 crore in assets under management with an annual turnover of Rs 19.9 crore.
- For the three-month ended 30 September 2022, the net profit of Yes Bank dropped by 32.2 percent year-on-year to Rs 152.8 crore.
- Total income during Q2 FY23, was higher at Rs 6,394.11 crore as against Rs 5,430.30 crore in the same period a year ago.
- Gross non-performing assets came down to 12.89 percent of gross advances as against 14.97 percent in the year-ago period.