Yes Bank looks for buyers to sell its portfolio of distressed corporate and retail loans

This comes almost a year after divesting a distressed loan book valued at Rs 48,000 crore.

The private bank has issued notices to finance companies and asset reconstruction companies (ARC) as it seeks potential buyers for its corporate and retail loans, carrying an outstanding debt of Rs 4,233 crore, according to the report.

In the preceding year, Yes Bank executed the sale of a non-performing loan portfolio totaling Rs 48,000 crore to JC Flowers ARC, marking it as the largest secondary market trade in the distressed loan segment.

The current corporate loan portfolio comprises eight accounts amounting to Rs 3,091 crore, while the retail portfolio stands at Rs 1,142 crore.

While the previous sale to JC Flowers ARC involved a combination of cash and security receipts, this time around, Yes Bank is exclusively inviting cash offers.

Notable entities within the corporate portfolio include two UK-based companies, Prometheon Enterprises Ltd, UK, with a debt of Rs 1,496 crore, and Malvern Travels, UK, with a debt of Rs 537 crore, both affiliated with Cox and Kings, the bankrupt travel agency, the report said.

Another company on the list is Katerra India Pvt Ltd, with a debt of Rs 521 crore, which was recently admitted for corporate insolvency, with Yes Bank being the sole lender, it added.

Yes Bank is looking to sell loans from various companies, including Indrajit Power, which has an outstanding debt of Rs 353 crore, the report said.

The bank has also put up real estate developers like ATS Realworth Pvt Ltd, ATS Infrastructure, ATS Township, and Umritha Infrastructure for sale.

Expressions of interest (EoI) have been invited for these assets, and the bank has not set a reserve price or a bidding date for the corporate loan book.

Yes Bank has invited EoI for its retail portfolio of Rs 1,142 crore, encompassing personal loans, vehicle loans, credit cards, commercial vehicle loans, construction equipment, and healthcare/hospitality equipment loans, with a deadline of December 18.

The retail portfolio comprises a personal loan portfolio of Rs 380 crore, vehicle loan books totalling Rs 183 crore, a credit card portfolio amounting to Rs 118 crore, a commercial vehicle loan book of Rs 119 crore, construction equipment loans of Rs 102 crore, and healthcare/hospitality equipment loans of Rs 102 crore.

The retail portfolio includes women microfinance borrowers with loans of Rs 166 crore and business loans amounting to Rs 70 crore.

In a notice to Asset Reconstruction Companies (ARCs), the bank has said the initiation of this process to identify an anchor bidder. It plans to conduct a Swiss challenge auction upon finalizing an anchor bidder.

The gross non-performing assets (NPA) amounted to Rs 4,319 crore in September 2023, compared to Rs 27,419 crore the previous year.