Mumbai: Yes Bank has invited offers from potential partners for proposed asset reconstruction companies that will recover bad loans.
Management Consulting Company Ernst & Young helps banks in the process.
In an ad on Wednesday, private banks invite applications from investors with assets under a minimum management of $ 5 billion and have substantial experience in a depressed asset room.
According to the bankers, given the assets of $ 5 billion under the criteria for management’s feasibility, it will be largely a global depressed asset fund that will qualify.
Yes the bank has collapsed under the weight of bad debt in March 2020 and placed under the moratorium by the RBI.
Although the EA Bank is part of the lender’s consortium in most default cases, it is the worst blow because the exposure is disprotortional with its size and the bank has a presence in almost every main stress asset.
It was reconstructed through a scheme that the government was notified with banks led by SBI which brought significant capital.
Given the complexity of recovery from major absenteeism, YES new banks have pursued asset reconstruction companies since the beginning in early April 2020.
Overcoming analysts in post-results calls last week, Kumar Prashant MD & CEO of Bank.
Said that it had made a recovery of cash amounting to RS 5,000 Crore last year, and recovering more than the provisions.
“The type of business which is involved with the NPA customers we have made during the past year – and which continues – I think it will give us a much better recovery during the current fiscal year, and our recovery will also produce significant profits on P & L And there will be no need to make additional conditions for this, “Kumar said.
The bank has a total gross non-performing exposure of RS 38,821 Crore at the end of June 2021 compared to RS 39,034 Crore in the previous quarter.
“On the recovery side, our prepared asset management team specialized from around 100 professionals has shown a significant track record of cash recovery.
He added that the team was divided into two parts – the core resolution & recovery team, and support function.” We hope to have Recovery of cash from Rs 5,000 Crore in the current financial year, “Kumar said.