With private sector lender Yes Bank still facing capital woes, the Reserve Bank of India (RBI) has agreed to extend the special liquidity facility for the lender for another three months, a central bank official said on condition of anonymity.
“Considering the prevailing capital situation of the bank, the RBI has decided to extend the support for a further period,” said the official. The facility, announced earlier for three months till 16 June, was given to the bank as temporary assistance after the lender was bailed out by a bank consortium as part of an RBI-initiated reconstruction package.
Yes Bank had requested the RBI to extend the facility for a year. On March 13, 2020, the government notified the "Yes Bank Ltd. Reconstruction Scheme, 2020".
As per the scheme, authorised capital was increased from Rs 1,100 crore to Rs 6,200 crore. The State Bank of India (SBI) and others invested in 1,000 crore shares at a price of Rs 10 per equity share.
The bank has received capital amounting to Rs 10,000 crore as of March 14, 2020 from a consortium of banks and financial institutions led by State Bank of India.
SBI is required to hold up to 49 percent with a minimum holding of 26 percent in the bank subject to a three-year lock in. Other investors are subject to a three-year lock-in for 75 percent of the investments they make in the bank.
In Q4, Yes Bank posted a net loss of Rs 3,668 crore in the quarter ended March on account of higher provisions, or the money set aside to cover risky loans. The loss posted in the three months to March 2020 more than doubled compared with the Rs 1,507 crore loss posted a year ago.
Yes Bank showed an extraordinary income of Rs 6,297 crore (net of tax) from the writedown of additional tier- 1 (AT1) bonds in its profit and loss account. If that amount were to be adjusted with the profit after tax (PAT) figure, the bank would show a profit of Rs 2,628 crore.
Most notably, the gross non-performing assets (GNPAs), or bad loans, of the bank stood at 16.8 percent compared with 3.22 percent a year ago. Compared with the December quarter, the gross NPAs eased up a bit from 18.87 percent. Net NPAs in the March quarter stood at 5.03 percent compared with 5.97 percent in the December quarter and 1.86 percent in the year ago quarter.
The bank's deposits have shrunk to Rs 1.05 lakh crore, down 54 percent compared with Rs 2.27 lakh crore in the year-ago quarter while advances declined 29 percent y-o-y to Rs 1.7 lakh crore from Rs 2.4 lakh crore in the year-ago quarter. The capital adequacy ratio under Basel-III fell to 8.5 percent from 16.5 percent in the year-ago quarter.
Yes Bank is in the process of raising more capital to meet the regulatory norms and fund its revival plans.