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Yes Bank Q1: House back in order, says CEO Ravneet Gill

Gill said that the bank’s sub-investment grade book has bottomed out and he expects “material reduction” in the book on back of ongoing resolutions.

July 17, 2019 / 10:39 PM IST
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After completing his first quarter as the CEO of  Yes Bank, Ravneet Gill said that he is assured that the “house is in order” and slippages are under control as the lender plans to raise capital by September-end to refocus on growth.

“The capital that we need is purely growth capital and is not capital that is being sought for absorption buffers or provisioning,” Gill said in an earnings call on July 17.

He added that he does not expect any slippages outside the bank’s bad loan watchlist. Also, the bank’s internal profits for the next eight quarters will be enough to cover the provisioning needs for slippages from sub-investment grade book.

Yes Bank’s Common equity Tier-I capital took a hit of 46 basis points in the April-June quarter to end at 8 percent, which is the minimum regulatory requirement to be maintained by March 2020. This despite providing Rs 1,399 crore against bad loans from the contingency pool of Rs 2,100 crore that the bank had set aside in the March-ended quarter.