Yes Bank posts higher than expected loss of ₹3,788 cr
Premium- The bank has reported a net loss of ₹3688 crore a year ago and net profit of ₹151 crore last quarter
Mumbai: Private sector lender Yes Bank on Friday reported a higher than expected loss of ₹3,788 crore at the end of March quarter owing to higher provisions.
The bank has reported a net loss of ₹3,688 crore a year ago and net profit of ₹151 crore last quarter.
TRENDING STORIESSee All
Yes Bank made accelerated provision of ₹5,240 crore at the end of March quarter compared to ₹4,872 crore a year ago and ₹2,199 crore in the previous quarter.
Gross non-performing assets as a percentage of total loans stood at 15.4% at the end of March quarter compared to 15.3% in the previous quarter. The bank added fresh bad loans worth ₹11889 crore during the quarter. Speaking to media post quarterly earnings, Prashant Kumar, managing director and chief executive officer, said that much of the slippages came from corporate book and sectors affected by Covid-19.
"We believe that asset quality and bad loan recognition have peaked. We are expecting less than ₹5000 crore of slippages in the bext fiscal. we made accelerated provisioning this quarter so that next year earnings won't be impacted from previous books," said Kumar
Operationally, Yes bank's net interest income, or income from loans and deposits, growth declined by 22.5% to ₹987 crore as on 31 March 2021. Non interest income rose 36.6
% to ₹816 crore at the end of March compared to ₹597 crore a year ago. Kumar said that the bank plans to grow it's transactional banking business faster than the lending business.
Yes Bank's loan book growth declined by 2.7% while deposits grew by 54.7% year on year. The bank expects loan book growth of 15% in the next financial year. Current and savings account or casa ratio at more than 30%.
MORE FROM THIS SECTIONSee All
On the Asset reconstruction company proposal, Kumar said that the reserve Bank of india has rejected it earlier proposal. Mint was the first to report on 15 March that RBI had rejected Yes Bank's proposal citing conflict of interest..The bank is now awaiting RBI's revised rules on ARC, he added.
Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.