Yes Bank may sell bad loans to funds instead of ARCs, says report

Yes Bank may sell bad loans to funds instead of ARCs, says report

Private sector lender Yes Bank may sell more of its bad loans to funds instead of asset reconstruction companies (ARC) after the Reserve Bank of India (RBI) found that the lender sold its assets to two ARCs at a 100 percent haircut, The Economic Times reported on Monday.

Yes Bank has put more non-performing assets (NPAs) on sale and is following e-bidding of these assets, a source close to the development told the newspaper.

The bank sold one NPA account of Rs 195 crore, with cash recovery of Rs 120 crore in the fourth quarter, said the report.

Yes Bank reported a net loss of Rs 1,506.6 crore for the March 2019 quarter as provisions rose. The bank has an aggregate outstanding funded exposure of Rs 2,528 crore as of March 31, 2019, of which Rs 2,442 crore has been classified as NPA.

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