Cerberus Capital Management, L.P. and J.C. Flowers & Co. LLC have submitted competing binding bids to buy a majority stake in Yes Bank Limited (NSEI:YESBANK)'s proposed asset reconstruction company (ARC), said two people aware of the matter. Oaktree Capital Management, L.P. and Apollo Global Management, Inc. (NYSE:APO) have withdrawn from the race to set up the ARC to house the private lender's bad loans of more than INR 540 billion, the people cited above said requesting anonymity.

A total of 13 companies were vying last year to acquire the bad loans. EY, which is advising Yes Bank, shortlisted four bidders who were asked to submit binding bids by 25 January. Yes Bank, JC Flowers and Cerberus did not respond to emailed queries.