MUMBAI, March 19 -- The Reserve Bank of India (RBI) has rejected Yes Bank Ltd's application to set up an asset reconstruction company (ARC) to warehouse bad loans citing a conflict of interest, two people aware of the matter said.
Yes Bank sought approval to launch the ARC in September and was expected to operationalize it within six months of securing clearance.
In an interview with Reuters on 10 February, the bank's managing director and chief executive, Prashant Kumar, said the bank was expecting to transfer nearly '50,000 crore of bad loans to the ARC. Many foreign investors had expressed interest to invest in the ARC. The bank was hoping to infuse '1,000 crore capital into the ARC while the foreign investors would put in '2,500 crore...