Yes Bank Ltd., a Mumbai-based private lender, has finalized the transfer of its exposure to Katerra India Pvt. Ltd. to Prudent ARC Ltd., as disclosed in an exchange filing. Prudent ARC Ltd. operates as an Asset Reconstruction Company. Yes Bank has received ₹203.4 crore as cash consideration for this transaction.
The transfer of assets comes after Yes Bank issued an Expression of Interest for the sale of identified stressed loan exposures through auction, utilising the Swiss Challenge Method, under the provisions outlined in the Reserve Bank of India's Master Direction on the transfer of loan exposures, 2021.
Katerra India Pvt. Ltd. entered corporate insolvency proceedings last year, owing a debt of ₹521 crore to Yes Bank. With this transaction, Yes Bank has managed to recover nearly 40% of its exposure to Katerra.
Katerra India, a subsidiary of the US-based Katerra, was impacted by the bankruptcy filing of its parent company's US and Cayman Island entities in 2021. Despite this, Katerra India has expressed its commitment to continuing its construction projects and solutions within India.
Reportedly, Katerra India's portfolio encompassed various projects including hospitals, business parks, malls, and hotels spread across several Indian states.
Notably, over a year ago, Yes Bank had offloaded a distressed loan book valued at ₹48,000 crore to JC Flowers ARC.
Following this announcement, shares of Yes Bank witnessed a 1.7% decline on Tuesday, closing at ₹23.05. Despite this, the stock has shown a notable increase of 50% over the past 12 months.
The transfer of assets comes after Yes Bank issued an Expression of Interest for the sale of identified stressed loan exposures through auction, utilising the Swiss Challenge Method, under the provisions outlined in the Reserve Bank of India's Master Direction on the transfer of loan exposures, 2021.
Katerra India Pvt. Ltd. entered corporate insolvency proceedings last year, owing a debt of ₹521 crore to Yes Bank. With this transaction, Yes Bank has managed to recover nearly 40% of its exposure to Katerra.
Katerra India, a subsidiary of the US-based Katerra, was impacted by the bankruptcy filing of its parent company's US and Cayman Island entities in 2021. Despite this, Katerra India has expressed its commitment to continuing its construction projects and solutions within India.
Reportedly, Katerra India's portfolio encompassed various projects including hospitals, business parks, malls, and hotels spread across several Indian states.
Notably, over a year ago, Yes Bank had offloaded a distressed loan book valued at ₹48,000 crore to JC Flowers ARC.
Following this announcement, shares of Yes Bank witnessed a 1.7% decline on Tuesday, closing at ₹23.05. Despite this, the stock has shown a notable increase of 50% over the past 12 months.
First Published: Mar 20, 2024 6:57 AM IST
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