NEW DELHI: Shares of YES Bank fell 5 per cent in Wednesday's trade ahead of its quarterly results later in the day.

The scrip fell 5.26 per cent to hit a low of Rs 25.20 on BSE.

BoB Capital Markets expects the private lender to report 64.4 per cent drop in net interest income (NII) at Rs 893.2 crore. It expects YES Bank to report a Rs 5,245 crore loss for the January-March period. The losses, however, are likely to come down sequentially.

YES Bank reported a record loss of Rs 18,564 crore at the end of the December quarter after being put under administration. The lender’s bad loans shot up substantially to Rs 40,709 crore during that quarter.

Kotak Securities expects asset quality ratios of the bank to see further deterioration on lumpy corporate exposure. “We expect outstanding loans to decline nearly 40 per cent year-on-year (YoY) with a similar trend in deposits. There is likely to be an increase in pressure on net interest margin due to interest income derecognition,” it said.

Revenue pressure will also be high due to weak fee income, it added.

It estimates NII of the bank at Rs 1,006.7 crore, down 60 per cent YoY while a loss of Rs 4,404 crore. It projects fee income at Rs 659.8 crore, up 25 per cent YoY and treasury income at Rs 18 crore, a massive jump of 260 per cent.

Commentary from the management on capital raising, the progress of 'below investment grade' portfolio and deposit profile of the lender will be among key things to watch out for, analysts said.

BOB Capital said it expects the loan book to continue to decline, considering the sharp outflow of deposits, especially CASA deposits. Operating parameters are likely to remain weak while asset quality can further deteriorate, it added.