Yes Bank Transfers Katerra India Exposure, Receives ₹203 Crore

On March 19, 2024, Mumbai-based private lender Yes Bank Ltd informed in an exchange filing that the company had completed the transfer of its exposure to Katerra India Pvt. Ltd to Prudent ARC Ltd.

Details of the Transaction

On Tuesday, Yes Bank stated, “Yes Bank Limited vide newspaper publication dated January 20, 2024, had invited Expression of Interest for the sale of identified stressed loan exposures through auction under Swiss Challenge Method, being undertaken by the bank in accordance with the provisions of Reserve Bank of India’s Master Direction on Transfer of Loan Exposures, 2021,” in an exchange filing.

Prudent ARC Limited is an Asset Reconstruction Company, and Yes Bank has received ₹203.4 crore as cash consideration for the same.

Regarding the same, the bank added, “Subsequent to the above, the bank has now 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 ₹203.40 crore in relation to the same.”

Yes Bank further added that “As the net amount received by the bank (excess of consideration amount over the underlying net carrying value of the loan) is more than the materiality threshold as prescribed under the Listing Regulations, this event is being disclosed under Regulations 30 of Listing Regulations.”

US-based Katerra’s Indian unit was Katerra India. In 2021, the US and Cayman Island entities filed for Chapter 11 bankruptcy protection. Despite the bankruptcy filing, Katerra India said it will continue to focus on their construction projects and solutions. Katerra India’s portfolio includes business parks, hospitals, hotels and malls across the country.

Katerra India was pushed into corporate insolvency last year. The company has a debt worth ₹521 crore to Yes Bank, where the bank has recovered approximately 40% of its exposure to Katerra.

In December 2022, Yes Bank sold a distressed loan book worth ₹48,000 crore to JC Flowers ARC.

On Wednesday, March 20, 2024, the share price of Yes Bank opened at ₹23.25, touching the day’s high at ₹23.60, as of 10:24 AM on the NSE.

About Yes Bank

Yes Bank is a commercial bank that provides various products, services, and digital solutions. The bank caters to retail, corporate and MSME customers. Yes Bank operates its Brokerage business through its wholly-owned subsidiary, YES SECURITIES.

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