YES Bank shares in focus on Wednesday as lender sold stressed assets to ARC

Shares of YES Bank Ltd will be in the focus of traders on Wednesday as the private lender sold stressed loan exposure to an asset reconstruction company. The company informed about the same through an exchange filing after the market hours on Tuesday.

YES Bank vide newspaper publication dated January 20, 2024, had invited expression of Interest for sale of identified stressed loan exposures through auction under Swiss challenge method, being undertaken by the Bank in accordance with the provisions of Reserve Bank of India’s Master Direction on Transfer of Loan Exposures, 2021, said the lender's exchange filing.

"Subsequent to the same, YES Bank has concluded the transfer of exposure of the Bank in Katerra India Private Limited to Prudent ARC Limited, an asset reconstruction company, and has received cash consideration of Rs 203.40 crore in relation to the same," exchange filing said.

The lender disclosed the same as the  net amount received by the Bank, excess of the consideration amount over the underlying net carrying value of the loan, is more than the materiality threshold as prescribed under the listing regulations, said YES Bank.
 

Shares of YES Bank settled at Rs 22.97 on Tuesday, falling about 2 per cent for the day. The total market capitalization of little more than Rs 66,000 crore. The lender has crashed 30 per cent from its 52-week highs at Rs 32.81, hit on February 9, 2024.