With the stages set for the YES Bank’s gross traffic jam asset which is reduced to 1.5-2 percent, new investors can enter the bank. The source shows that one ongoing agreement with the US-based JC flower arc to remove the emphasized assets, there may be at least two new investors who enter the bank with 10 percent of equity shares each.
The bank recently revealed that they had been out of the reconstruction scheme in March 2020. This was almost eight months before the period of three years. However, for shareholders, the embargo on trade may not be revoked until March 2023.
NPA assistance
A week ago, the bank made an agreement with the JC Flowers ARC, which can provide a facelift that is needed for its books. Last Saturday, the bank launched the Swiss challenge process to sell bad loans worth ₹ 48,000 crore to bow. Assets are expected to be taken by JC Flowers at a minimum price of 11,000 crore, and the process can take 50-75 days to conclude. In October or November this year, the bank balance sheet can be seen very acceptable compared to the form.
Gross NPA, according to Prashant Kumar, yes MD & CEO of the Bank will shrink from 13.9 percent at FY22 to 1.5 – 2 percent when the sale of bad loans to ARC concluded.
Asset sales will also involve banks that vote for 20 percent of shares in Indian clothing from JC flower arc by ₹ 350 crore. The assets sold to the arc will consist of ₹ 28,000 dirty npa npa allocated in FY22, ₹ 11,000 CRORE Technical Elimination and ₹ 9,000 Crore Additional Bad Loans. With this, most of the companies and retailers will be managed. Not only that, about two percent of NPA dirty, the quality of bank assets will return to the pre-distribution period FY17.
Installing asset sales, which requires monitoring is ₹ 6,752 crore loans that are restructured, where ₹ 3,966 Crore is a restructuring related to COVID and ₹ 1,016 CRORE is an MSM book.
The entry of new investors
When Ravneet Gill took over in 2019, Gunung NPA was a great prevention for potential investors to consider the bank well. With a problem approaching the resolution, this set the stage for the fundraising of the Mega billion of the Second Bank Dollar (₹ 7,500 Crore), which was approved by his adviation in May 2020. Capital infusion will sustain the bank cet ratio from 11.4 percent in FY22 to 14 percent.
Sumber said the bank was in advanced talks with several private equity investors, including Carlyle and Advent, each took 10 percent of shares. This investment will come after the assets that are emphasized are left to the bow. While the bank has not yet indicated any time line, yes the bank can reach the market for an increase in capital in the December quarter, if the Swiss challenge process to sell its depressed assets is ended according to schedule.
After returning to net profit at Fy22 (₹ 1,044 crore) after two years of large loss, the balance sheet was cleaned and the new investor set foot, yes the bank was only a few quarters of turning leaves
