Yes Bank posts Rs 1,506 crore Q4 loss on NPA provisions
TNN | Updated: Apr 27, 2019, 13:12 ISTHighlights
- The bank disclosed that it has Rs 2,528-crore exposure to various companies of the IL&FS group, of which Rs 2,442 crore has been classified as non-performing assets (NPAs)
- Overall, it recorded slippages (loans going into default) of Rs 3,481 crore, of which Rs 552 crore was a loan to Jet Airways
(File photo)MUMBAI: Yes Bank reported a loss of Rs 1,506 crore for the fourth quarter ended March 2019. This was the first quarterly result without its promoter-CEO Rana Kapoor, who was replaced with Ravneet Gill, former CEO of Deutsche Bank in India, during the quarter. In the same period in the previous year, the bank had recorded a net profit of Rs 1,179 crore.
The bank on Friday also announced the appointment of Shagun Kapur Gogia and Ravindra Kumar Khanna as additional directors (non-executive, non-independent), subject to the approval of shareholders at the next annual general meeting. The appointments are based on joint recommendations from two promoter groups.
Gogia is the daughter of late Ashok Kapur, who had co-promoted Yes Bank along with Rana Kapoor. She had fought a legal battle with the bank’s former CEO for a place on the board. The board, which had earlier turned down a proposal for Gogia’s appointment, voted in her favour after a truce between the two promoter families.
The bank disclosed that it has Rs 2,528-crore exposure to various companies of the IL&FS group, of which Rs 2,442 crore has been classified as non-performing assets (NPAs). Overall, it recorded slippages (loans going into default) of Rs 3,481 crore, of which Rs 552 crore was a loan to Jet Airways.
The fourth quarter loss shrank the annual net profit to Rs 1,720 crore as against Rs 4,224 crore in FY18. The loss was a result of a near tenfold spike in provisions to Rs 3,661 crore, up from Rs 399 crore in the corresponding period in the previous year. The loss was contained following a write-back of provisions of Rs 831 crore last year.
“We will lay emphasis on granularity, sustainability and digitalisation while maintaining highest standards on compliance and prudence in risk,” said Gill, presenting results for the first time.
He added that the bank will fall back on its robust transaction banking, retail and digital platforms.
The bank on Friday also announced the appointment of Shagun Kapur Gogia and Ravindra Kumar Khanna as additional directors (non-executive, non-independent), subject to the approval of shareholders at the next annual general meeting. The appointments are based on joint recommendations from two promoter groups.
Gogia is the daughter of late Ashok Kapur, who had co-promoted Yes Bank along with Rana Kapoor. She had fought a legal battle with the bank’s former CEO for a place on the board. The board, which had earlier turned down a proposal for Gogia’s appointment, voted in her favour after a truce between the two promoter families.
The bank disclosed that it has Rs 2,528-crore exposure to various companies of the IL&FS group, of which Rs 2,442 crore has been classified as non-performing assets (NPAs). Overall, it recorded slippages (loans going into default) of Rs 3,481 crore, of which Rs 552 crore was a loan to Jet Airways.
The fourth quarter loss shrank the annual net profit to Rs 1,720 crore as against Rs 4,224 crore in FY18. The loss was a result of a near tenfold spike in provisions to Rs 3,661 crore, up from Rs 399 crore in the corresponding period in the previous year. The loss was contained following a write-back of provisions of Rs 831 crore last year.
“We will lay emphasis on granularity, sustainability and digitalisation while maintaining highest standards on compliance and prudence in risk,” said Gill, presenting results for the first time.
He added that the bank will fall back on its robust transaction banking, retail and digital platforms.
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