YES Bank Ltd shares will be the focus of traders on Wednesday after the private lender liquidated stressed credit exposure to an asset reconstruction business. The company disclosed this in an exchange filing after market hours on Tuesday.
According to the lender's exchange filing, YES Bank, in a newspaper publication dated January 20, 2024, invited expressions of interest for the sale of identified stressed loan exposures through auction under the Swiss challenge method, which is being carried out in accordance with the provisions of the Reserve Bank of India's Master Direction on Transfer of Loan Exposures, 2021.
"Subsequent to the same, YES Bank has concluded the transfer of exposure of the Bank in Katerra India Private Limited to Prudent ARC Limited, an asset reconstruction company, and has received cash consideration of Rs 203.40 crore in relation to the same," exchange filing said.
The lender revealed that the net amount received by the bank, which is the excess of the consideration amount over the underlying net carrying value of the loan, above the materiality threshold set by the listing regulations, according to YES Bank. The bank's shares finished at Rs 22.97 on Tuesday, down nearly 2% for the day. The overall market capitalization is a bit over Rs 66,000 crore. The lender has dropped 30% from its 52-week high of Rs 32.81, reached on February 9, 2024.
