This article is more than 3 year old.

Yes Bank assigns credit exposure in Jaypee Cement to Assets Care

Mini

Yes Bank on Friday said it has assigned its exposure in Jaypee Cement Corp to Assets Care & Reconstruction Enterprise.

Yes Bank assigns credit exposure in Jaypee Cement to Assets Care
Yes Bank on Friday said it has assigned its exposure in Jaypee Cement Corp to Assets Care & Reconstruction Enterprise.
"Yes Bank Limited (the Bank) has assigned its exposure in Jaypee Cement Corporation Limited to Assets Care & Reconstruction Enterprise Ltd along with security interests inter alia 11,390,544 equity shares having nominal value of Rs 10 each, constituting 30 per cent of the paid up share capital of Bhilai Jaypee Cement Limited (BJCL) on September 28, 2018," it said in a regulatory filing.
Following this, it has resulted into "changes in holding of the Bank by more than 2 percent of the total shareholding of BJCL," the bank said.
Earlier in 2017, the debt-ridden Jaiprakash Associates had proposed to sell entire 74 percent stake in Bhilai Jaypee Cement Ltd for an enterprise value of Rs 1,450 crore.
On April 20, 2017, Wednesday YES Bank had reported the March quarter profit at Rs 914 crore, a 30.2 per cent growth, but said its exposure to a cement company led to a doubling of its bad loans and the provisions were made for them.
"This is a cement company from the north and to the best of our knowledge, there is a binding agreement to buy out a certain cement assets by a leading corporate house based in Mumbai. But, to be conservative and to meet this new circular, we are complying with it but I am quite certain there will be significant recovery very very soon, YES Bank Managing Director and Chief Executive Officer Rana Kapoor had said.
However, bank's credit exposure to the Japyee Cement Corp could not be ascertained.
Jaypee group is facing a debt crisis and its group firm Jaypee Infratech has taken over by a National Company Law Tribunal (NCLT)-appointed IRP for recovery of bad loans. Besides, the group is facing huge protest from home buyers because of significant delays in delivery of projects and doubt over its financial health.
Yes Bank stock closed 9.72 percent down at Rs 183.45 on BSE.
next story

Market Movers

Currency

CompanyPriceChng%Chng