Yes Bank creates stressed asset management vertical to recover, resolve NPA accounts

Having recognised a huge quantum of non-performing assets (NPAs) in the past few quarters, Yes Bank has created a dedicated stressed asset management vertical to recover and resolve such accounts that have touched Rs 50,000 crore, a top official said on Thursday.

The bank has also appointed six merchant bankers for a proposed capital raising exercise of up to Rs 15,000 crore in which it is aiming to get new investors, including global private equity funds, into the bank, its Managing Director and Chief Executive Officer Prashant Kumar told PTI.

Yes Bank's board had to be superseded by the Reserve Bank of India (RBI) and the government earlier this year after alleged mismanagement under its founder CEO Rana Kapoor. It was bailed out by a string of lenders led by SBI, who pumped in Rs 10,000-crore fresh capital to keep it afloat. Kumar started off by recognising a huge pile of assets as bad, resulting in a massive Rs 18,000 crore loss for the December 2019 quarter.

"We have huge NPAs of