Yes Bank branch in Mumbai. (Reuters)
Yes Bank branch in Mumbai. (Reuters)

Yes Bank reports its first ever quarterly loss of 1507 crore

  • Provisions during the quarter increased more than 9 folds to 3661.7 crore as against 399.64 crore in the year-ago quarter
  • The bank posted a net loss of 1506.64 crore for the three months ended 31 March compared to a profit of 1179.44 crore in the year-ago period

MUMBAI: Private sector lender Yes Bank Ltd on Friday reported its first-ever quarterly loss at 1,506.64 crore on the back of higher provisions. The bank would have reported a steeper loss if not for a tax write-back of 832 crore in the March quarter.

Meanwhile, the bank’s board approved the appointment of Ravinder Kumar Khanna and Shagun Kapur Gogia as additional directors (non-executive, non-independent) with immediate effect. Interestingly, in June 2013, Yes Bank’s board turned down Gogia’s application to be nominated as a director on the bank’s board.

Profit in the March quarter was lower than the 1,023.9 crore estimated by a Bloomberg poll of 23 analysts. Total provisions during the quarter increased more than nine-fold to 3,661.7 crore, as against 399.64 crore in the year-ago quarter. In the December quarter, the bank set aside 550.23 crore in provisions.

Yes Bank’s other income, which includes core fee income, dropped 62.58% to 531.69 crore from 1,420.97 crore in the year-ago quarter.

Net interest income (NII)—the difference between interest earned on loans and paid on deposits—increased 16.33% from 2,154.24 crore in the March quarter of 2018 to 2,505.93 crore in March quarter 2019. Its net interest margin (NIM)—a key measure of profitability—fell 30 basis points (bps) on a year-on-year basis and 20bps, sequentially.

In a filing to the stock exchanges, it said gross slippages in the fourth quarter stood at 3,481 crore, of which 552 crore was on account of an airline, and 529 crore on account of a stressed infrastructure conglomerate.

The bank has an outstanding loan of 2,528 crore to various companies and special purpose vehicles of Infrastructure Leasing & Financial Services, of which 2,442 crore has been classified as non-performing asset (NPA), with a specific provision of 610 crore prior to the National Company Law Tribunal order dated 25 February.

“Subsequently, the bank has retained classification for the balance exposure of 85.9 crore as standard, although this exposure would be required to be classified as NPA," Yes Bank said in the stock exchange filing.

Its gross NPAs, as a percentage of total advances, were at 3.22% in the March quarter compared with 2.10% in the December quarter, and 1.28% in the year-ago quarter. Post-provision, the net NPA ratio was at 1.86%, against the 1.18% in the December quarter, and 0.64% in the year-ago quarter.

On Friday, Yes Bank’s shares lost 0.13% to close at 237.40 apiece, while the benchmark Sensex index gained 0.87% to close at 39,067.33 points.

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