Yes Bank sheds DHFL bonds, raises Rs 500 crore from secondary market

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26 Aug, 2025 12:21

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Yes Bank has sold bonds 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).

“In DHFL, our exposure was in bonds. Part of it has already been monetised through a market sale and we have to see about the remaining bonds. These are essentially subordinated debt,” Prashant Kumar, MD of Yes Bank told The Times of India.

Yes bank is also looking to sell its mutual funds by 2020-end to raise more capital.

On recoveries from investments in DHFL, Kumar said the bank has made Rs 900 crore – though delayed due to the pandemic, and expects a larger recovery during the current quarter. He noted that while growth has been 1.5 percent further expectations are also in the single digits.

On advances he said that Yes Bank will increase its moves towards retail by de-risking its corporate portfolio and growing its retail book. It will also be “aggressive” in growing deposit base through planned improvement in credit-deposit ratio from 123 percent to 100 percent by 2020-end.

Deposit increase is planned through expansion of branches by acquiring customers digitally and through its partnership with UPI platform PhonePe, and through targeted focus on providing cash management services for current accounts of corporate customers.

Kumar said Rs 2,300 crore worth loans have slipped into default, but are not categorised as non-performing assets (NPAs) due to the Supreme Court order, while another Rs 4,000 crore loans – overdue by 60 days, are “at risk”.

Stressed loans would require Rs 1,300 core in the current year, Kumar said, adding that the bank has “adequate provisions” of Rs 1,900 crore for NPAs arising due to the pandemic. It will also set up an asset reconstruction entity to take over bad loans, as per the report.