Yes Bank has listed another portfolio worth little more than Rs 4200 crore for sale, nearly a year after selling a troubled loan book around Rs 48000 crore.
The private bank has sent two separate letters to finance companies and asset reconstruction companies (ARC) seeking purchasers for its corporate and retail loans with an outstanding debt of Rs 4233 crore.
In what is thought to be the largest secondary market sale in the troubled loan area, the bank sold JC Flowers ARC a portfolio of non-performing loans for Rs 48000 crore last year.
The retail loan portfolio is worth Rs 1142 crore, while the corporate loan portfolio consists of eight accounts with Rs 3091 crore.
This time, the bank is solely looking for cash proposals; in contrast to the sale of impaired loans to JC Flowers ARC, which involved both cash and security receipts.
Two UK-based businesses are included in the corporate portfolio: Malvern Travels, UK, with a debt of Rs 537 crore, and Prometheon Enterprises Ltd., UK, with a debt of Rs 1496 crore. Both are connected to the defunct travel company Cox and Kings.
Katerra India Pvt Ltd is the other company on the list, and it owes Rs 521 crore. Yes Bank is the only lender, and it was just admitted for corporate insolvency.
Additionally, it wishes to sell loans from Indrajit Power, a business supported by Uttam Galva’s Miglani family. The business that supplied electricity to Uttam Galva’s steel plants is currently in arrears for Rs 353 crore.
Certain developers of real estate, including ATS Realworth Pvt Ltd (debt of Rs 115 crore), ATS Infrastructure (debt of Rs 8 crore), ATS Township (debt of Rs 26 crore), and Umritha Infrastructure (debt of Rs 16 crore), have been listed for sale by Yes Bank.
For the corporate loan book, the bank accepted expressions of interest (EoI) but did not establish a reserve price or a deadline for bidding.
It issued a separate notice inviting Expressions of Interest by December 18 for its Rs 1142 crore retail portfolio.
The portfolio of loans comprises Rs 380 crore for personal loans, Rs 183 crore for vehicle loans, Rs 118 crore for credit card loans, Rs 119 crore for commercial vehicle loans, Rs 102 crore for construction equipment loans, and Rs 102 crore for loans for healthcare and hospitality equipment.
Women microfinance customers with loans totaling Rs 166 crore and business loans totaling Rs 70 crore are also included in the retail portfolio.
The bank informed ARCs that it has started this exercise in order to find an anchor bidder and that, once an anchor bidder has been selected, a Swiss challenge auction would take place.
According to an analyst presentation, its gross non-performing asset (NPA) for September 2023 was Rs 4319 crore, compared to Rs 27419 crore the previous year.
