Yes Bank files insolvency petition against Jaypee Healthcare

Industry:    2019-12-03

Private sector lender Yes Bank on Monday filed an insolvency petition against Jaypee Healthcare before the Allahabad bench of National Company Law Tribunal (NCLT). Yes Bank has made claims worth 189.4 crore against Jaypee Infratech, which is the promoter company of Jaypee Healthcare.

Jaypee Infratech is already undergoing insolvency proceedings.

Jaypee Infratech, which was admitted to the NCLT in August 2017 after an application by an IDBI Bank-led consortium, owes nearly 9,800 crore to as many as 13 lenders, which doesn’t include Yes bank. Its business affairs and assets are being managed by the interim resolution professional, Anuj Jain. State-owned NBCC (India) Ltd and Suraksha Realty Ltd will place final bids to acquire Jaypee Infratech’s realty projects on Tuesday.

Yes Bank, which according to the Reserve Bank of India (RBI), under-reported bad loans by 3,277 crore in FY19, posted a net loss of 600 crore for the quarter ended September, primarily due to a one-time deferred tax asset adjustment of 709 crore. The bank had posted a net profit of 965 crore in the same period last year. The private sector lender also reported a 42% rise in provisions in the September quarter to 1,336.25 crore.

Yes Bank’s asset quality deteriorated in the September quarter as its gross bad loan ratio or bad loans as a percentage of advances rose 579 bps year-on-year and 238 bps sequentially.

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