Receipt of One Time Settlement (OTS) amount from a Non Performing Advance (NPA) - Disclosure under Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015
Awaiting price reaction for this filing.
Yes Bank has recovered INR 201 crores from a borrower under a One Time Settlement (OTS) arrangement to close out a previously classified non-performing advance (NPA). The settlement is a full and final payment of the dues owed to the bank. The net recovery (settlement proceeds minus the carrying value of the NPA on the bank's books) exceeds the materiality threshold prescribed under SEBI Listing Regulations, which is why the bank is disclosing this under Regulation 30. The disclosure was made on June 21, 2025 via a letter signed by the Company Secretary.
This is a positive development for shareholders as it represents a recovery above the NPA's book value, which will likely result in a gain for the bank and help improve asset quality. Such recoveries strengthen the balance sheet and support profitability, though the impact is limited to the gain amount over carrying value rather than the full INR 201 crore figure.