Yes Bank has solicited bids from possible partners for a planned asset reconstruction firm that will handle bad loan recovery. Ernst & Young, a management consulting firm, is assisting the bank with the process.
In an advertising published on Wednesday, the private bank sought submissions from investors with at least $5 billion in assets under management and extensive expertise in the distressed asset market. According to bankers, given the $5 billion assets under management qualifying criterion, global distressed asset funds will be the majority of those who qualify.
The RBI imposed a ban on Yes Bank after it collapsed under the weight of bad loans in March 2020. Although Yes Bank was part of a consortium of lenders in most default instances, it took the brunt of the damage since its exposure was disproportionate to its size and the bank had a position in nearly every major stressed asset.
