Yes Bank takes possession of ADAG building following loan default
The possession of the building took place as on July 22 under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFESI)
July 29, 2020 / 11:42 PM IST
Yes Bank has taken possession of Reliance Centre, the headquarters of the Anil Dhirubhai Ambani Group (ADAG) in Mumbai, reports said on July 29, citing a newspaper advertisement by the bank.
The bank has reportedly taken possession of the over 21,000 sq ft headquarters in Santacruz, Mumbai and also two floors in Nagin Mahal in South Mumbai. The possession of the building took place as on July 22 under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFESI).
Anil Ambani group has a total loan exposure of Rs 12,000 crore to Yes Bank. The bank proceeded to take possession of the ADAG building after the group failed to repay dues of Rs 2,892 crore.
In March, the Anil Ambani group told CNBC-TV18 that its entire exposure to Yes Bank was fully secured. Ambani had told the Enforcement Directorate officials that all transactions between ADAG and Yes Bank are in compliance with the law and financial regulations. He added that the group neither has any direct or indirect exposure to Rana Kapoor, his wife, and his daughters nor is it exposed to any entities controlled by them, the CNBC TV18 report stated.
Ambani had further reiterated the group's commitment to honour the repayment obligations of all its borrowings from Yes Bank through asset monetisation programmes, adding that the ADAG will continue to extend full support and cooperation to all authorities.
Yes Bank, which was bailed out by a bank consortium in March, is under pressure to reduce its bad loans. In the April-June quarter, the bank reported a 60.1 percent year-on-year (YoY) fall in standalone net profit at Rs 45.44 crore against Rs 113.76 crore in the corresponding quarter of the previous financial year.
Net interest income (NII) declined 16.3 percent YoY to Rs 1,908.2 crore. Gross non-performing assets (NPA) now stand at 17.3 percent against 16.8 percent QoQ while net NPA came in at 4.96 percent against 5.03 percent.