YES Bank Acquired 9.9 per cent stake in JC Flower ARC

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.

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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.