Yes Bank Limited has informed the Exchange regarding 'Receipt from a trust in the Security Receipts Portfolio: Loan Portfolio Sold to J. C. Flower Asset Reconstruction Private Limited ( JC Flower ARC ) disclosure under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( Listing Regulations )'.
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Yes Bank has informed the stock exchanges that it has received INR 189 crores from a single trust within its Security Receipts Portfolio. This receipt relates to a Non-Performing Asset (NPA) loan portfolio that the Bank had sold to J.C. Flower Asset Reconstruction Private Limited on December 17, 2022. Importantly, the amount recovered is in excess of the underlying carrying value of that trust, which is why the Bank is disclosing this under Regulation 30 of the Listing Regulations, as the receipt crosses the materiality threshold. The recovery is being treated as a positive upside on a previously written-off/sold stressed asset portfolio.
This is a positive one-time recovery for Yes Bank shareholders, as the bank is getting more back than the carrying value on a bad loan portfolio it had earlier sold to an ARC. It provides a modest earnings tailwind and signals that recoveries from legacy stressed assets are progressing better than originally provisioned, though the amount is not large enough to materially alter the stock's direction on its own.