New Delhi: The Reserve Bank of India has rejected the proposal of the public sector YES Bank to set up an Asset Reconstruction Company (ARC) to address the problem of bad loans. Last September, Yes Bank sought RBI approval to launch the ARC and it was expected to be operationalized within six months of getting the approval.
In an interview Prashant Kumar, managing director and CEO of YES Bank, said that the bank was expecting to transfer a bad loan of around 50,000 crore to ARC.
Many foreign investors expressed a desire to invest in ARC. In this, the bank was expecting to infuse capital of 1000 crores, while foreign investors were to invest capital of 2500 crores.