Yes Bank likely to post heavy quarterly loss on weak business, high provisions

"We expect outstanding loans to decline around 40 percent YoY and similar trend on deposits. There is likely to be an increase in pressure on NIM (interest income de-recognition). Revenue pressure will be high also due to weak fee income (sharp decline)," Kotak said.

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The Reserve Bank of India took over the Yes Bank management during the quarter and put it under moratorium on March 5 which prompted some depositors to withdraw their deposits when the bank has been struggling for liquidity.

Then the central bank lifted moratorium on Yes Bank on March 18 and handed the charge to new board members. Prashant Kumar is the new MD and CEO of the bank.

SBI, HDFC, Axis Bank, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank invested Rs 10,000 crore in Yes Bank.

Brokerages expect further weakness in asset quality and elevated slippages in quarter ended March 2020.

"We expect asset quality ratios to see further deterioration (lumpy corporate exposure)," said Kotak which sees provisions rising 91 percent YoY.

According to Emkay, slippages could remain elevated as the bank may continue to recognize stress from its pool.

Commentary from the management on capital raising, progress of 'below investment grade' and deposit profile would be key things to watch out for.

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