Shares of Yes Bank climbed more than 3% after the lender announced a recovery of ₹210 crore from its Security Receipts (SR) portfolio, providing a positive trigger for investor sentiment. As of 9:31 AM, the shares were trading 3.42% higher at Rs 17.84.
The recovery stems from funds received from two trusts, amounting to ₹110 crore and ₹100 crore, respectively. These receipts are linked to the bank’s earlier sale of a stressed Non-Performing Asset (NPA) portfolio to J.C. Flower Asset Reconstruction Private Limited (JC Flower ARC) in December 2022.
The development is particularly significant as the amount received from each trust individually exceeds the underlying carrying value of those trusts. This has crossed the materiality threshold defined under regulatory norms, prompting the bank to formally disclose the update under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, governed by Securities and Exchange Board of India.
This recovery highlights progress in Yes Bank’s ongoing efforts to clean up its balance sheet and improve asset quality following past stress in its loan book. Investors often track such recoveries closely, as they directly impact profitability and strengthen financial stability.
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