Mumbai, Jun 14 (IANS): In a major setback to Yes Bank, sources close to developments have revealed that the Reserve Bank of India (RBI) has rejected the appointment of Akash Suri as the CEO of the JC Flowers Yes Bank ARC.

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.

In July 2022, Yes Bank 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 December last year, Yes Bank 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 has 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.