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    Yes Bank clarifies on JV partner, bins report of RBI nod for ARC stake

    Yes Bank clarifies on JV partner, bins report of RBI nod for ARC stake

    Yes Bank clarifies on JV partner, bins report of RBI nod for ARC stake
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    By CNBC-TV18  IST (Updated)

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    'The bank would like to clarify that, certain news articles reported by media carrying a reference to RBI giving in-principle approval to the bank to hold 20% stake in ARC is speculative and has no bonafide reference,' Yes Bank stated.

    Private sector lender Yes Bank on July 13 clarified that the news item on Reserve Bank of India (RBI) giving in-principle approval to the bank to hold a 20 percent stake in an asset reconstruction company (ARC) is speculative and has no bonafide reference.

    "The bank would like to clarify that, certain news articles reported by media carrying a reference to RBI giving in-principle approval to the bank to hold 20% stake in ARC is speculative and has no bonafide reference," it said in a statement to exchanges.

    Further, the bank said it is not aware of the source, which resulted in the above-mentioned news item and as a matter of policy, the bank would not like to comment on such speculation.

    JC Flowers leads ARC partner bid

    "The bank would like to clarify that as informed earlier, the bank had initiated a process for Partner Selection for an ARC vide calling a Public Expression of Interest. Currently, the process is underway and at this point of time, there is no binding/effective decision in this regard," the bank said.

    This comes after Yes Bank's Board Credit Committee’s meeting on July 13 to consider a joint venture partner for an ARC. US-based private equity firm JC Flowers had emerged as the highest bidder for the private lender's proposed ARC. Foreign private equity firms like Cerberus Capital and Apollo Global ​were also in the fray to partner with Yes Bank for its ARC foray.

    Yes Bank will hold a Swiss Challenge auction to invite counter bids with JC Flowers' offer as the anchor bid, post the board nod, according to sources. The bank will also seek RBI's nod for its 20 percent stake in the ARC after the Swiss auction and 80 percent stake to be held by the foreign partner.

    The bank is looking to transfer approximately Rs 51,000 crore of loans to an ARC to completely clean up its books. The JC Flowers' deal had valued Yes Bank's NPA portfolio at Rs 12,100 crore, higher than other suitors (net of recoveries since evaluation).

    Shares of Yes Bank ended at Rs 13.24, down by Rs 0.10, or 0.75 percent on the BSE.

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