YES Bank invites bids for sale of corporate, retail NPAs worth ₹4,234 cr

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YES Bank has invited expressions of interest (EoI) for the proposed sale of NPAs worth ₹4,234 crore, the bank said in a notice on Monday.

Bids have been invited to identify an anchor bid for the stressed assets sale, all of which are being offered on an upfront 100 per cent cash basis, the notice said.

The private sector lender has put on the block corporate NPAs worth ₹3,092 crore which includes fund-based outstanding of ₹3,073.66 crore and non-fund-based outstanding of ₹17.83 crore as of October 31, 2023.

These include eight companies, namely Katerra India, Indrajit Power, ATS Realworth, ATS Infrastructure, ATS Township, Umritha Infrastructure Development and UK-based Malvern Travel and Prometheon Enterprises, which turned NPA between September 2019 and June 2022.

NPA overview

The retail NPAs worth ₹1,142 crore comprise personal loan NPAs of ₹380 crore, vehicle loans of ₹183 crore, women microfinance of ₹166 crore and credit card NPAs of ₹118 crore. In addition, they include commercial vehicle loans of ₹119 crore, construction equipment loans of ₹102 crore, business loans of ₹70 crore and healthcare and hospitality equipment loans of ₹4 crore. The average vintage delinquency of these portfolios is between 12 to 37 months, the bank said.

YES Bank has invited bids for the sale of stressed loans, by December 18.

As of September 2023, YES Bank has gross NPAs of ₹4,319 crore of which corporate banking NPAs were ₹2,236 crore, mid-corporate NPAs were ₹219 crore and SME NPAs were ₹452 crore. Retail NPAs stood at ₹1,413 crore.

The gross NPA ratio of the bank was 2.0 per cent, within which the ratio for corporate banking loans was 4.5 per cent and for retail loans was 1.4 per cent. The net NPA ratio of the bank was at 0.9 per cent as of the end of September.