InvestorQ : Is it true that Yes Bank is planning to hive off its stressed assets into a bad bank?
Arusha Ray made post

Is it true that Yes Bank is planning to hive off its stressed assets into a bad bank?

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Dhwani Mehta answered.
3 months ago
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Concept of bad bank is nothing new but Yes Bank may be making an attempt to actually implement it. Yes Bank plans to hive off bad assets into a separate company, which will be something like a bad bank. This will lower the stress on the balance sheet of Yes Bank. The CEO, Prashant Kumar, wants to run the bad bank like a professional outfit.

Yes bank also plans to get outside investors and any upside in the bad bank will be shared by the lenders and the investors. Yes Bank has a major problem on hand with gross NPAs in excess of 16.8%. The good news for Yes Bank is that most bad loans are provided for. A clear picture will only emerge when the EMI moratorium is lifted in August 2020.

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