Yes Bank’s board has approved the sale of stressed assets worth Rs 48,000 crore to JC Flowers ARC.

Yes Bank will also pick up a 19.99% stake in the ARC, the private lender said in a regulatory filing. This will be subject to required regulatory approvals.

In the Swiss Challenge auction, Yes Bank did not receive any competing bids against base bidder JC Flowers ARC.

In July this year, the US-based asset reconstruction company (ARC) had emerged as the base bidder for the identified stressed loan book of Yes Bank aggregating up to Rs 48,000 crore. 

As per Reserve Bank of India (RBI) guidelines on transparent bidding process, Yes Bank had conducted a Swiss challenge for inviting challenger bids.

The Swiss Challenge process has now concluded and the bank has not received any challenger bids to the base bid, Yes Bank said in a regulatory filing.

“The board of directors of the bank, at their meeting held on 20 September 2022, has approved the declaration of JC Flowers ARC as the winner of the Swiss Challenge process," Yes Bank said in a statement.

As per the binding term sheet between the bank, JCF ARC LLC and JC Flowers for sale of the identified portfolio, the board members also approved the necessary investment for acquisition of up to 19.99% equity stake in JC Flowers ARC by the bank, it said.