Private sector lender Yes Bank on April 26 reported its biggest quarterly loss in 14 years at Rs 1,507 crore for the quarter ended March 31 owing to spike in bad loans (mainly IL&FS Group and Jet Airways).
Profit in quarter ended March 2018 was Rs 1,179.44 crore.
Net interest income, the difference between interest earned and interest expended, grew by 16.3 percent year-on-year to Rs 2,506 crore with credit growth at 18.7 percent, but net interest margin contracted by 30 bps.
"Advances grew by 18.7 percent YoY to Rs 2,41,500 crore with retail loan growth at 62.3 percent," the lender said, adding deposits grew by 13.4 percent to Rs 2,27,610 crore YoY.
"I am confident that our robust transaction banking, retail and digital platforms will allow us to accelerate granularity in our businesses," said Ravneet Gill, who has taken charge as Managing Director and CEO of the bank after Rana Kapoor stepped down.
Provisions and contingencies shot up significantly to Rs 3,661.7 crore in quarter ended March 2019, a massive increase of 9 times over corresponding period last year and 6.6 times compared to previous quarter.
Yes Bank said it has created contingency provision of around Rs 2,100 crore pursuant to a review of the credit portfolio.
Total provisions for the quarter also included provisions related specific loan loss Rs 1,270 crore, investment MTM Rs 243 crore and other Rs 48 crore, it added.
Provision coverage ratio dipped to 43.1 percent in March quarter 2019, against 50 percent as of March quarter 2018 and 44.2 percent in December quarter 2018.
The bank reported gross slippages for March quarter at Rs 3,481 crore. "Of which Rs 552 crore was on account of an airline company exposure that was performing as on March 31, 2019 and Rs 529 crore on account of stressed infrastructure conglomerate," it said.
Hence, asset quality worsened during the quarter. Gross non-performing assets (NPA) as a percentage of gross advances were higher at 3.22 percent against 2.10 percent in previous quarter. Net NPA also increased at 1.86 percent against 1.18 percent in December quarter.
In absolute terms, gross NPA were higher by 53 percent to Rs 7,882.56 crore and net NPA also increased by 56 percent to Rs 4,485 crore.
Yes Bank said it has an aggregate outstanding funded exposure of Rs 2,528 crore as of March 2019 of which Rs 2,442 crore has been classified as NPA, and Rs 86 crore continued to be classified as Standard in line with the NCLAT order dated February 25, 2019.
Other income (non-interest income) fell sharply by 62.6 percent to Rs 532 crore and operating profit plunged 38 percent to Rs 1,323.4 crore in Q4.
For the year, the bank's profit plunged 59 percent to Rs 1,720.3 crore and net interest income grew by 26.8 percent to Rs 9,809 crore compared to previous year.
Moreover, the board recommended divided of Rs 2 per share. They approved raising fund up to Rs 20,000 crore by issue of debt securities and $1 billion in one or more tranches.
They also appointed Shagun Kapur Gogia as additional director (non-executive non independent).
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