Home >Companies >News >Yes Bank expects NPAs to dip next quarter: CEO Prashant Kumar

MUMBAI : Private sector lender Yes Bank, which would have seen its non-performing assets (NPA) ratio touch 20% in the third quarter had it not been for a Supreme Court order, is expecting it to decline from the next quarter, managing director and chief executive officer Prashant Kumar said. Collection efficiency has rebounded to 96% and cheque bounce rate has come down to 9% from 19% during the peak of the pandemic, Kumar said in an interview.

“We need to recognize there is a problem. When the GDP is contracting and we assume that there is nothing wrong, that’s not fair... Whatever is the covid impact, we are making our assessment, this is the peak. We expect things to improve only," Kumar added.

Yes Bank reported a gross NPA ratio of 15.36% as on 31 December. But an SC order on classifying loans has masked another 8,322 crore NPAs form a mix of retail, corporate and small businesses. Of this, debt recast has been initiated for loans of 1,264 crore under RBI’s covid-19 package announced on 6 August.

Kumar added that the lender has initiated debt recast for loans worth 8,062 crore as on 31 December, but these have not yet been implemented. RBI has given banks three months to implement retail recasts and six months for corporate loans. He added the bank is expecting to recover 5,000 crore of bad loans this financial year, of which 3,000 crore has been recovered so far.

Yes Bank continues to be cautious about growing its loan book due to covid-19, Kumar said. The bank saw 2% quarter-on-quarter growth in loan book to 1,69,721 crore in the third quarter. It added 225,000 customers during the quarter. “Last year, we were focussed on de-risking and de-bulking of loan book. While we have kept no target, we will be careful in terms of quality." The bank’s focus is to get more retail deposits and is expecting 65-70% deposits growth, besides growing its branch network, Kumar said.

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