After the end of a three-year lock-in period, the RBI will allow the borrower to exit the reconstruction it entered in March 2020, according to a statement by the bank on Friday.
The private lender informed exchanges that the completion of the lock-in period lasts three years affects 75 per cent of YES Bank's shares and does not affect those who hold less than 100 shares.
In this regard, it may be noted that the bank received confirmations from depositaries, viz India Limited CDSL and National Securities Depository Limited NSDL, that the locked-in shares would be released on March 13, 2023, after the lock-in period. The automated system of depositories will not require any further action from the bank, as it said on March 12, 2023.
The completion of the aforementioned lock-in period is the pre-requisite for the completion of the three parameters before it can leave the reconstruction. The second parameter is the submission of a compliance certificate by the lender to the RBI, stating that all the conditions of the have been met. The third parameter is the confirming that all conditions have been met.
In June 2022, the board of recommendation was for the formation of an alternate board on the back of the private sector bank to achieve a turnaround and make significant progress after the implementation of the reconstruction scheme.
In March 2020, the government and the government framed a restructuring scheme to salvage the troubled private sector bank, which was once run and promoted by Rana Kapoor. The scheme was led by State Bank of India and injected 10,000 crore in the scheme.
The bank saw a full-year profit of Rs 1,066 crore in FY 22 after two successive years of heavy losses in FY 20 and FY 21. The deposit book was doubled from 1.05 trillion in Mar 2020 to 1.97 trillion in March 2022, according to the lender.
YES Bank has approved the sale of stressed loans worth Rs 48,000 crore to JC Flowers Asset Reconstruction, after receiving no challenge to the bid made by the private equity company.
After the transfer of gross gross NPAs - the bulk of which came from corporate loans, YES Bank's gross NPA ratio would dip below 2 per cent, Prashant Kumar, YES Bank's MD CEO, said in July.
In the first quarter of the current financial year, YES Bank reported an improvement in its asset quality, with gross NPAs falling to 13.45 per cent of gross advances as of June 30, 2022, from 15.60 per cent at the end of June 2021. Net NPAs or bad loans went down to 4.17 per cent, from 5.78 per cent.