RBI rejects appointment of Akash Suri as CEO of Yes Bank-JC Flowers ARC: Sources
Before being appointed as CEO of the JC Flowers ARC, Akash Suri was the group president and national head of Yes Bank's asset reconstruction business.
The Reserve Bank of India (RBI) has rejected the appointment of Akash Suri as the CEO of Yes Bank-JC Flowers Asset Reconstruction Company (ARC), sources told Zee Business. RBI approval is necessary for getting appointed as a key managerial person in ARCs and non-banking finance companies. Suri will step down from his post on June 30.
Suri, before being appointed as CEO of the JC Flowers ARC, was the group president and national head of Yes Bank's asset reconstruction business.
Suri did not respond to phone calls and WhatsApp messages seeking his comments on the story. Yes Bank did not reply to an email query seeking response. The RBI did not respond to email queries.
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Yes Bank had entered into a partnership with New York-based JC Flowers to form an ARC for the sale of identified stressed loans of the bank in July 2022. Following the deal, Yes Bank had transferred Rs 48,000 crore worth of stressed loans to the ARC. The transfer of bad loans was done under the 15:85 structure, which means that the bank gets 15 per cent of loan value upfront from the ARC, while the remaining 85 per cent is in the form of securities.
JC Flowers had promised to pay the bank Rs 11,183 crore for the entire pool of stressed loans, resulting in 23 per cent recovery to the bank.