Yes Bank in talks with ARCs to sell NPAs worth over Rs 32,000 crore: Report

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Troubled private sector lender Yes Bank is in discussions with several asset reconstruction companies (ARCs) to sell off bad loans worth Rs 32,344 crore. It has appointed EY as an advisor for the bids, Business Standard reported.

Yes Bank has already made provisions for 76 percent of its gross non-performing assets (NPAs) worth Rs 24,476 crore and is looking at the sale to “regain its place” in India’s banking sector, the report noted.

Yes Bank and EY did not respond to queries, as per the report.

The move comes after the private lender sold bonds held in Dewan Housing Finance (DHFL) in the secondary market to raise Rs 500 crore and reduce exposure to the troubled non-banking financial company (NBFC). It is also looking to sell its mutual funds by 2020-end to raise more capital.

Besides this, the bank is also in talks with strategic investors to set up its own ARC to house NPAs, the report added.

The “clean-up process” has been on since the Reserve Bank of India (RBI) superseded the entire board of Yes Bank in March. Since then, the lender was brought under new management and successfully raised Rs 15,000 crore through IPO route and over Rs 5,500 crore through long-term refinancing borrowing.