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MUMBAI : Yes Bank Ltd's deposit base declined by 34% to 1.37 trillion between 30 September and 5 March, it said in a statement late on Saturday evening.

The sharp dip in deposits largely comes from the fall in its savings and term deposits. Bank's savings deposits decreased 25% sequentially to 29,764 crore in the December quarter of FY20. Term deposits fell 22% q-o-q to 1.12 trillion and current account deposits have declined by 6% quarter-on-quarter (q-o-q) to 23,440 crore, in the same period.

The private lender's advances between October to December declined to 1.86 trillion. Its deposits declined from 2.09 trillion as on 30 September to 1.65 trillion as on 31 December and have eroded further since then.

Yes Bank has been placed under a Reserve Bank of India (RBI) imposed moratorium since 5 March after the central bank superseded its board and appointed former State Bank of India CFO Prashant Kumar as its administrator.

Meanwhile, it is to be seen how the bank is able to arrest the decline in its deposit base after the moratorium is lifted. The moratorium imposed on Yes Bank will be lifted on 18 March after 6 pm, the government said while notifying the State Bank of India-backed rescue plan for the private bank. The reconstruction scheme for the cash-strapped private lender is effective 13 March.

After the moratorium goes, the new board, including two directors from SBI, will be set up within seven days. Thereafter, Reserve Bank of India (RBI)-appointed administrator Kumar, will vacate the office.

The bank reported a standalone net loss of 18,560 crore in the December quarter of FY20, primarily because of 24,765 crore in provisions it set aside.

Mint reported on 10 March that since last September, Yes Bank Ltd had sold more than 15,000 crore of loans to public sector banks to meet mounting demand for withdrawal of deposits. These were retail loans originated by Yes Bank and were classified as standard on its books.

ABOUT THE AUTHOR

Shayan Ghosh

Shayan Ghosh is a national writer at Mint reporting on traditional banks and shadow banks. He has over a decade of experience in financial journalism. Based in Mint’s Mumbai bureau since 2018, he tracks interest rate movements and its impact on companies and the broader economy. His interests also include the distressed debt market, especially as India’s bankruptcy law attempts recoveries of billions worth of toxic assets.
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