YES BANK disclosed the receipt of INR 189 crores from a trust related to the Security Receipts Portfolio, stemming from the sale of a Non-Performing Asset (NPA) portfolio to JC Flower ARC on December 17, 2022. The amount received exceeds the underlying carrying value, triggering disclosure norms. This announcement highlights the bank’s continued efforts in managing its asset quality and recovering value from previously stressed assets. The bank informed stakeholders through an exchange filing.
Receipt from Security Receipts Portfolio
YES BANK has announced that it received INR 189 crores from a single trust in the Security Receipts Portfolio. The transaction is linked to the earlier sale of its Non-Performing Asset (NPA) portfolio to JC Flower Asset Reconstruction Private Limited (“JC Flower ARC”) on December 17, 2022.
Details of the Transaction
The inflow of INR 189 crores is from a trust related to the Security Receipts Portfolio. As the amount exceeds the underlying carrying value of the trust, it meets the criteria for disclosure. This development follows YES BANK’s strategic move to offload its NPA portfolio to JC Flower ARC, aiming to improve its balance sheet and financial performance.
Strategic Implications
The receipt of these funds underscores YES BANK’s commitment to recovering value from its previously held stressed assets. This recovery enhances the bank’s financial position and demonstrates effective management of its asset quality. The bank remains focused on optimizing its financial health and delivering value to its stakeholders through prudent asset management strategies.
Source: BSE
