Yes Bank to launch ARC by year-end
Private sector lender Yes Bank plans to launch its 29.5 per cent stake in the asset reconstruction business (ARC )by this year-end, says an official.business Updated: Aug 24, 2008 11:12 IST
Private sector lender Yes Bank plans to launch its asset reconstruction business by this year-end, a top bank official said.
The bank, which will hold a 29.5 per cent stake in the asset reconstruction company (ARC), has roped in three public sector banks besides a leading foreign bank as partners for the business.
"We will be signing the shareholders agreement within three months and expect all regulatory formalities to be completed by this year-end," Yes Bank's Managing Director and CEO Rana Kapoor told PTI in Mumbai.
He, however, did not divulge the identities of the partner banks, except to say that "all four are big ones."
The bank has shortlisted candidates and will soon zero in on a CEO for the Asset Reconstruction Company (ARC), Kapoor said.
While the foreign bank will hold 37.5 per cent stake, the three public sector banks will jointly hold 33 per cent in the company.
The focus of the ARC in the initial two to three years would be on corporates as the turnaround opportunities in Mumbai were greater. "With legal enforcement becoming more effective and revival opportunities stronger, we scent an immense potential in this segment," Kapoor said.
The ARC would also look at providing capital to needy businesses. "There's a lot of assets lying dormant in our system, which with capital infusion and provision of development opportunities, can be successfully turned-around," he said.