Yes Bank's credit committee to meet today to consider JV partner for ARC

New Delhi: 's credit committee is likely to meet on Wednesday to consider the sale of its asset reconstruction company (ARC), suggested media reports.

According to ET Now, the credit committee of the private lender will meet today to discuss the ARC sale, with JC Flowers chosen as H1 bidder with a bid of close to Rs 12,100 crore.


Yes Bank is looking to transfer about Rs 51,000 crore of loans to an ARC to completely clean up its books. JC Flowers' deal had valued Yes Bank's NPA portfolio at Rs 12,100 crore, higher than other suitors, net of recoveries since evaluation.

The beleaguered lender will be using the Swiss challenge method to select the preferred bidder. However, the lender has remained tight-lipped and did not respond to the queries sent by ET Now.

Under the Swiss Challenge method of procurement, a candidate makes a proposal for a project, which is put to seek more proposals. Once these are received, the original candidate is allowed to match the best bid.

However, Yes Bank will sell only an 80 per cent stake in the ARC and will keep the remaining 20 per cent with itself. The scrip settled at Rs 13.34 on Tuesday, gaining more than a per cent.

Stock performance on the lender has been range-bound in the past few months. Shares of Yes Bank have dipped about 5 per cent on a year-to-date basis, whereas the stock is marginally up in the last one year.

Carlyle is the front runner for buying a 5-10 per cent stake in Yes Bank, besides other private equity players (PEs). Yes Bank's annual general meeting (AGM) is scheduled to be held on July 15.

Earlier this month, Yes Bank had reported a 14 per cent growth in the load book on a yearly basis to Rs 1.9 lakh crore, thanks to strong demand for loans. Its deposits increased more than 18 per cent to Rs 1.93 crore, the lender said.

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