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Yes Bank on the cusp of raising $1 billion from Carlyle and Advent International

This comes after much delay due to an ongoing deal to lay off a large portion of bad loans through an asset reconstruction company (ARC)

June 21, 2022 / 09:09 AM IST
(Representative image)

(Representative image)

Yes Bank is on the verge of closing $1 billion fundraising from private equity firms Carlyle and Advent International, as per Mint, after much delay due to an ongoing deal to lay off a large portion of bad loans through an asset reconstruction company (ARC), Mint reported.

Earlier this month CNBC TV18 reported that Carlyle, based in Washington, is interested in acquiring a 10 per cent stake in Yes Bank via convertible debt.

The bank's board will meet mid-July to discuss the fundraising, as per Mint.

Past reports had stated that Carlyle is mulling a Rs 3,750-4,500 crore ($500-600 million) investment in Yes Bank.

Also, Moneycontrol had reported in April that Carlyle will sell its entire stake in SBI Cards & Payments Services for as much as Rs 2,558 crore via a block deal.

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As reported by Mint on 2 June, Yes Bank had chosen JC Flowers ARC as its partner to offload bad loans of Rs 49,000 crore as it aims to clean up its books and raise capital for credit growth.

The bad loan book of Rs 49,000 crore includes so-called technical write-offs worth Rs 17,000 crore and soured investments, the report added.

Two years after the Reserve Bank of India and the government adopted a special plan to save Yes Bank, the lender announced on 8 June that it had begun the process of exiting the reconstruction scheme, the Mint reported.

After significant progress in turning the bank around, the board of directors appointed under the scheme recommended setting up a new board and seeking shareholders' approval.

 
first published: Jun 21, 2022 09:09 am
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