Yes Bank Q2 earnings : Net profit rises over 47%

 


Yes Bank of October 21 reported a 47.4 percent rise in its net profit to Rs 225.21 crore in the second quarter of the current financial year. In the previous quarter last year, net profit of the bank stood at Rs 152.82 crore.


On sequential basis, net profit falls over 34 percent. The asset quality of the bank in the reporting quarter improved, with gross non-performing asset (NPA) ratio stood at 2 percent, and Net NPA ratio stood at 0.9 percent.


In absolute terms, gross NPA stood at Rs 4319.03 crore as on September 30, and net NPA stood at Rs 27419.11 crore as on September 30.


In the reporting quarter, provisions and contingencies fell 14.1 percent on-year to Rs 500.38 crore. In the similar period last year, it stood at Rs 582.81 crore. Provision Coverage Ratio (PCR) of the bank stood at 56.4 percent, as against 48.4 percent last quarter. Including Technical  write-off, PCR stood at 72.1 percent, as compared to 67.8 percent.


Yes Bank, the private sector lender has reported deposits growth of 17.2 percent on-year, which is up 6.8 percent on-quarter to Rs 2.34 lakh crore, while its advances increased by 9.5 percent on-year and 5.2 percent on-quarter to Rs 2.20 lakh crore as detailed in the filing with BSE dated October 3.


In the reporting quarter, CASA Ratio remained stable on sequential basis, at 29.4 percent despite challenging environment. 3.91 lakh CASA Accounts opened during the quarter, release said.


The net interest income of the bank stood at Rs 1,925 crore, which was 3.3 percent up on-year. Net interest margins (NIM) for Q2FY24 at 2.3 percent down by nearly 30 basis points (Bps) on-year and 20 bps on-quarter.


In Q2FY24, Non-Interest Income at Rs 1,210 crore, up 38.4 percent on-year and 6.0 percent on-quarter.


YES Bank in July-September quarter reported interest expanded at Rs 4785.61 crore, as compared to Rs 3483.02 crore in a similar period last year.

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YES Bank Q1 Results: Profit rises 10% YoY ; NII up 8% 6 hours ago


 Private sector lender Yes Bank on July 22 reported a 10.26 percent year-on-year (YoY) rise in net profit to Rs 342.5 crore in the first quarter of the current financial year, up from Rs 314.3 crore in the year-ago period.


The bank's asset quality saw a healthy improvement for the quarter. The lender's gross non-performing assets (GNPAs) stood at 2 percent compared with 13.4 percent in the corresponding quarter of the previous fiscal.


The net non-performing assets (NNPA) for the quarter stood at 1 percent compared with 4.2 percent in the year-ago quarter.


Prashant Kumar, Managing Director and CEO, Yes Bank said, “Q1FY24 was a steady quarter where we have demonstrated significant progress in line with our strategic objectives. While the balance sheet granularity momentum continued, we also delivered strong growth in our fee income while containing our operating and credit costs."


"With the focus of the bank now firmly aligned towards improving the profitability of the franchise, over the coming quarters, we will continue to work on levers that further accelerate this momentum such as improvement in NIMs and CASA ratio, reducing the drag from legacy PSL requirements, further cross-sell and product penetration," Kumar added.


The lender's net interest margin (NIM) for the June quarter stood at 2.5 percent up nearly 10 basis points YoY, while its non-interest income (NII) was at Rs 1,141 crore, up 54 percent YoY and 13.7 percent QoQ.


The bank's gross slippages for Q1FY24 were reported at Rs 1,430 crore compared to Rs 1,072 crore in the same period in the last financial year, and Rs 1,196 crore in the fourth quarter of FY23.


Total deposits for the quarter stood at Rs 219,369 crore, up 13.5 percent YoY and 0.9 percent QoQ. The bank's CASA ratio (ratio of deposits in current, and saving accounts to total deposits) was at 29.4 percent compared to 30.8 percent in Q1FY23 and Q4FY23. The lender opened 3,55,000 new CASA accounts in Q1FY24. Its retail and small business deposits (gross LCR definition) grew 17.9 percent YoY.

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Yes Bank Q4 results: Net profit declines 45%


Private lender Yes Bank Ltd on Saturday reported 45% drop in standalone net profit at Rs 202 crore for the quarter ending March 31, 2023 as provisions for bad loans increased. The bank reported standalone net profit of Rs 367 crore in the year-ago period.


Prashant Kumar, MD & CEO, Yes Bank said: “Over the last three years, the Bank has significantly progressed on several strategic objectives such as strengthening of Governance and Compliance Standards, bolstering the Balance Sheet through granularity, addressing the asset quality concerns, building up a strong liability franchise and expanding the customer base.


"At the same time, with continuous focus on retail, we have continued to expand our footprints with new Branches, increased the employee headcount and stepped-up our investments in technology. Our Retail franchise has now reached a critical scale and is poised for profitable growth. With the current momentum of accelerated growth, the efficiency gains and operating leverage will naturally drive the Bank’s profitability upwards."

Yes Bank’s provisions and contingencies increased to Rs 618 crore from Rs 271 crore a year earlier.


The lender's asset quality was mixed. The gross non-performing asset (NPA) ratio rose to 2.17% from 2.02% in the December quarter.


The gross NPA ratio was down from 13.93% a year earlier. In December Yes Bank completed the transfer of bad loans worth Rs 48,000 crore to private equity firm JC Flowers in a deal aimed at cleaning up its balance sheet.


The net NPA ratio was 0.83%, down from 1.03% in the prior three months.


Yes Bank's net interest income, the difference between the interest income from lending and that paid to depositors, rose 15.7% to Rs 2,105 crore from Rs 1,819.5 crore in the year-ago period. The net interest margin, a key indicator of a bank's profitability, rose to 2.8% from 2.5% a year earlier.


The private lender's net advances grew by 12.3% on year, led by retail loans, while deposits rose 10.3%.


Profits for both the March quarter and the fiscal year have been impacted by accelerated provisioning, the bank said.


For the entire fiscal FY23, the bank witnessed a 32.7% decline in its net profit at Rs 717 crore, it said in a regulatory filing.

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YES Bank Q3 profit rises 76.8% YoY


Yes Bank on Saturday reported a 76.8% year on year rise in net profit at 
Rs.266.4 crore in October-December quarter of FY22 as compared to Rs.150.7 crore profit during the same quarter last year. The private lender's profit rose 18.2 per cent on quarter on quarter basis from Rs.225 crore, while operating profit was up 7.7 per cent on Q-o-Q basis and down 66.4 per cent on YoY basis.


YES Bank's total net income in Q3 FY22 dipped by 31.5 per cent to Rs.2,498 crore in October-December 2021 quarter as against Rs.3,648 crore recorded in the corresponding period of previous year.


Yes Bank's net interest income, however, declined 31 per cent YoY to Rs.1,764 crore in Q3 FY22 compared to Rs.2,560 crore recorded in the corresponding quarter of 2020-21, while it grew at 16.6 per cent on Q-o-Q basis, Yes Bank said in a stock exchange filing. 


The bank's other or non-interest income in the said quarter stood at Rs.734 crore vs ₹1,087 crore recorded in the third quarter of 2020-21.


The bank's GNPA ratio further improved to 14.7 per cent, vs 15.0 per cent last quarter, led by lower slippages at Rs.978 crore vs Rs.1,783 crore in Q2 FY22.


Yes Bank's resolution momentum has continued with ₹610 crore of cash recoveries and Rs.573 crore of upgrades during Q3 FY22. The balance sheet also stayed above Rs.3 lakh crore for first time since Sept 2019, up 6 per cent Q-o-Q.

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YES Bank Q2 Results: Net profit soars 74% YoY


YES Bank today reported a 74.3 per cent year-on-year growth in net profit to Rs 225 crore for the quarter ended September as against analysts’ expectations of a Rs 31 crore net loss.The lender’s net interest income in the quarter, however, fell 23.4 per cent on-year to Rs 1,512 crore, which was below analysts’ expectations.

The healthy bottomline performance of the lender was thanks to a sharp decline in provisions. YES Bank’s provisions for bad loans declined 65 per cent year-on-year to Rs 377 crore.

The lender also reported a marked improvement in its asset quality in the quarter as gross non-performing loans ratio fell to 15 per cent from 15.6 per cent in the previous quarter. Similarly, net NPA ratio came in at 5.5 per cent as against 5.8 per cent in the previous quarter.

YES Bank said gross restructured loans at the end of the quarter were at Rs 6,184 crore. Overdue book, loans on which payments are due for more than 30 days but less than 90 days, declined Rs 6,000 crore sequentially.

Impressively, YES Bank’s current account-savings account ratio increased to 29.4 per cent in the reported quarter from 27.4 per cent in the previous quarter. At the same time, the portion of retail loans in total loan disbursements in the quarter improved 100 basis points sequentially to 55 per cent.

YES Bank’s advances posted a 3.5 per cent year-on-year growth but rose 5.6 per cent on a sequential basis. Deposits showed a remarkable 30 per cent on-year growth indicating that the lender is winning back the trust of customers.

However, the operating performance of the lender was underwhelming as operating profit declined 45.8 per cent on-year to Rs 678 crore. The net interest margin in the quarter fell 2.2 per cent from 3.1 per cent in the year-ago quarter.

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Yes Bank Q1 net profit up 355% YoY


Private lender Yes Bank's net profit rose by 355.2 per cent to Rs 207 crore in the first quarter ended June 2021 (Q1FY22) on a rise in non-interest income and a sharp dip in provisions.The bank posted net profit of Rs 45 crore during the same quarter last year (Q1FY21). Sequentially, the bank had booked a loss of Rs 3,788 crore in the quarter ended March 2021 (Q4FY21).


Its net interest income (NII) fell by 26.5 per cent in Q1FY22 to Rs1,402 crore from Rs 1,908 crore in Q1FY21. In April-June 2021,the moratorium was in force and bank booked interest income, which was reversed in the fourth quarter (Q4Fy21). Sequentially, NII was up by 42.1 per cent from Rs 987 crore in Q4Fy21.


Net interest margin (NIM) for the reporting quarter declined to 2.1per cent for Q1FY22 from three per cent for Q1FY21. However, sequentially NIM rose from 1.6 per cent in Q4Fy21.Prashant Kumar, its managing director and chief executive said the bank would close the financial year with NIM of about 2.6 per cent.


Its non-interest income was up by 70.2 per cent on YoY basis to Rs 1,056 crore in Q1FY22. Sequentially, it rose by 29.5 per cent from Rs 816 crore in Q4Fy21.The bank's asset quality profile improved with gross non-performing assets (NPAs) at 15.6 per cent by June 2021 from 17.3 per cent a year-ago. Sequentially, GNPAs rose marginally from 15.41 per ceny in March 2021.


Net NPAs rose to 5.78 per cent during the quarter from 4.96 per cent a year ago. Net NPAs were at 5.88 per cent in March 2021.Its provisions fell 40.7 per cent to Rs 644 crore in Q1FY22 from Rs 1,087 crore in Q1FY21. The provisions were at Rs 5,240 crore in Q4Fy21.


The provision coverage ratio (PCR) rose marginally to 79.3 per cent for Q1Fy22 from 79.1 percent a year ago. PCR was 78.6 per cent in March 2021.The impact of Covid-19 has been factored and going forward the upgrades will be more than slippages, said Prashanth Kumar.


Advances shrank by 0.5 per cent to Rs 1.63 trillion in Q1FY22, while deposits also grew by 39.1 per cent to Rs 1.63 trillion in June 2021. Bank has guided for 15 per cent credit growth with retail & MSMEs segment at 20 per cent and corporate growth of 10 per cent in Fy22.The bank’s total Capital Adequacy Ratio (CRAR) stood at 17.9 per cent in June 2021 with tier I of 11.6 per cent.

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Yes Bank Q4 net loss widens marginally

 


Private lender Yes Bank's standalone net loss widened marginally to Rs 3,788 crore in the March quarter of FY21 as against net loss of Rs 3,668 crore a year ago. The lender posted net profit of Rs 148 crore in the December quarter.


Deposits rose 55 per cent on an annual basis to Rs 1.62 trillion. Net interest income declined 23 per cent to Rs 987 crore as against Rs 1,274 crore in the year-ago period.


"FY21 was the year of rebuilding the foundation of YES Bank. Bank demonstrated significant improvement in performance across key indicators despite severe headwinds of Covid-19 and moratorium imposed on the bank in March 2020," the lender said on Friday in a stock exchange filing.


Provisions rose 7.5 per cent during the quarter to Rs 5,240 crore as compared to Rs 4,872 crore in March 2020.


Despite elevated slippages, the bank has prudently made accelerated provisioning reflected in the Provision Coverage Ratio (PCR) for NPA at 79 per cent, said YES Bank.


On Friday, the bank's scrip on NSE closed 0.7% higher at Rs 14.60.


During the quarter, the total income of the bank declined to Rs 4,805.30 crore from Rs 5,818.59 crore in the same period a year ago, Yes Bank said in a regulatory filing.


At the same time, provisions (other than tax expense) and contingencies rose to Rs 5,239.59 crore as compared to Rs 4,872.34 crore.


On the asset front, the bank's gross non-performing assets (NPAs) as of March 31, 2021 stood at 15.41 per cent of the gross advances, slightly down from 16.80 per cent in the year-ago period.


However, net NPAs rose to 5.88 per cent from 5.03 per cent in the year-ago period.


For the full 2020-21 fiscal, the bank narrowed its net loss to Rs 3,462.23 crore from a loss as high as Rs 16,418.02 crore in the previous year.


Total income during the year also witnessed a decline to Rs 23,382.56 crore from Rs 29,508.10 crore a year ago.


The bank said proactive provisioning of Rs 250 crore towards COVID-19 related restructuring (Rs 2,500 crore) is expected to be implemented in first quarter of the current fiscal.


"Deferred tax asset of Rs 9,354 crore as at March 31, 2021 is carried in the balance sheet, as basis financial projections approved by the Board of Directors, there is reasonable certainty of having sufficient taxable income to enable realization of the said deferred tax asset as specified in Accounting Standard 22 (Accounting for Taxes on Income)," it said.


The current second wave of COVID-19 pandemic has resulted in reimposition of localised lockdowns in various parts of the country, it said, adding the extent to which the pandemic will impact the bank's results will depend on ongoing as well as future developments, which are highly uncertain.


On March 5, 2020, the Reserve Bank had imposed a moratorium on the troubled private sector lender, including capping withdrawals at Rs 50,000 per depositor, after it found that the new management was unable to raise the urgent core capital which had fallen much below the mandated level.


Later, the Union Cabinet cleared a rescue package for the bank involving a Rs 7,250 crore investment by the State Bank of India (SBI). Four private lenders also committed an additional Rs 3,100 crore as part of the rescue plan.

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Yes Bank Q3 results: Net profit rises, NII jumps


YES BANK
 on Friday reported a 16.5% quarter-on-year increase in net profit to ₹151 crore for the quarter ended on 31 December. The bank saw a net profit of ₹129.37 crore for the quarter ended 30 September. The private lender posted a net loss of ₹18,560 core for the corresponding quarter last year.

The private lender's net interest income, the difference between interest earned and interest, expended 29% quarter-on-quarter to ₹2,560 crore in the quarter under review. It was ₹1,973 crore during the September quarter. Thanks to significant increase in the retail fees, the bank's non-interest income for Q3FY21 saw an increase of 69.4% quarter-on-quarter to 1,197 crore.

Provisions in the quarter under review increased 85.3% quarter-on-quarter to ₹2,199 crore, against ₹1,187 crore in Q2FY21, the bank said in the filing.

"Total step up in provisioning of ₹2,935 crore; consists of additional ₹765 crores towards COVID-19 related provisioning (aggregate at ₹2,683 crore) and balance majorly towards increasing PCR of both NPA and NPI," the lender said in the regulatory filing.

The bank’s gross non-performing assets (NPAs) improved to 15.4% as against 16.9% in September quarter. YES Bank’s net NPAs came in at 4%, compared with 4.7% in the September quarter.

The private lender's operating profit declined 13.1% year-on-year to ₹1,472 crore. Net advances at ₹1,69,721 crore grew 1.7% quarter-on-quarter, with strong pickup in retail and SME disbursement at ₹11,917 crores, the bank said.

Bank's total balance sheet size grew 18.6% quarter-on-quarter to ₹260,062 crore in the December quarter. Total deposits reported a increase of 7.7% (QoQ) to ₹146,233 crore crore. Its CASA ratio also improved at around 26% compared to 24.8% at Spetember, 2020.

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Yes Bank Q4 results: posts Rs 2,629 cr net profit on gains from AT-1 bond write-off

Yes Bank on Wednesday reported a net profit of Rs 2,629 crore for the March quarter, helped by a massive gain of over Rs 6,200-crore arising out of a controversial write-off of bond investors' investment.

If the one-off gain is excluded, then the bank, which was bailed out by a consortium-led by SBI in March, has a loss of Rs 3,668 crore in the latest quarter under review.

The private sector lender had a loss of Rs 18,560 crore loss in the December quarter while the loss was at Rs 1,506 crore in the March 2019 quarter.

The one-time gain is from the write-off of Additional Tier-I bondholders' Rs 8,419 crore investment, according to a release.

For the fiscal year 2019-20, Yes Bank reported a loss of Rs 16,481 crore, It had a profit of Rs 1,720 crore in the year-ago period.

As part of the the bailout process, the AT-1 bond holders' investment was written-off citing existing rules which gave the new management of the bank a huge breather to get the operations out of the restrictions imposed by RBI and the government on March 5, and start functioning normally.

The bank, which is now headed by SBI's former CFO Prashant Kumar, showed a marginal improvement in the gross non-performing assets ratio at 16.80 per cent in the March quarter as against 18.87 per cent in the three months ended December 2019.

Its overall provisions came at Rs 4,832 crore and the money set aside for NPAs came down to Rs 1,100 crore in the latest March quarter. In the three months ended December 2019, the lender had NPA provisioning of Rs 22,328 crore.

Net advances declined 29 percent to Rs 1.71 lakh crore in the latest quarter under review compared to March 2019 quarter and nearly 8 per cent as against December 2019 quarter.

Deposits at Yes Bank more than halved in the three months ended March compared to the year-ago period.

The core net interest income rose 19.6 per cent sequentially to Rs 1,274 crore in the March quarter. Non-interest income grew 12.3 per cent to Rs 597 crore in the three months ended March compared to the same period a year ago, the release said.

The bank said its strategic focus area of retail has shown resilience despite the lockdown and was one of the key contributors to the business performance during the March quarter.

The overall capital adequacy of the bank stood at 8.5 per cent as of March 31 with the core Tier-I at 6.3 per cent.

To avoid a possible collapse of Yes Bank, RBI had sacked its management and placed the lender under an administrator on 5 March with a 30-day moratorium, which was later on curtailed to nearly two weeks.

The moratorium on the bank which restricted cash withdrawals limits to only Rs 50,000 was lifted after banking hours on March 18.

On 13 March, the government notified the rescue plan drafted by the RBI.

As part of the ‘Yes Bank Limited Reconstruction Scheme 2020', SBI and other investors made equity capital infusion to the tune of Rs 10,000 crore. Private lenders ICICI Bank, Axis Bank, Kotak Mahindra Bank, IDFC First Bank, Bandhan Bank, Federal Bank and mortgage lender HDFC Ltd have also infused capital of over Rs 3,000 crore in cash-starved Yes Bank to keep it afloat.
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YES Bank Q3 results: Bank reports record loss in Dec quarter

Private sector lender Yes Bank Ltd. reported its largest ever quarterly loss in October-December quarter as it saw a surge in bad loans. The increased provisions needed to cover for the loans depleted the bank's capital.

For the quarter ended December 2019, Yes Bank reported a loss of Rs 18,564 crore compared to a profit of Rs 1001 crore in the same quarter last year. In the preceding quarter, Yes Bank had reported a net loss of Rs 600 crore.

The bank’s net loss would have been wider at Rs 24,778 crore in the third quarter, if it weren’t for a tax write back of Rs 6,214 crore.
The bank reported a surge in bad loans which led to a jump in provisions that need to set aside against the soured debt.
Gross non-performing assets rose to Rs 40,709.20 crore, or 18.87 percent of the bank’s total loan book. At the end of the September quarter, bad loans stood at 7.39 percent of the loan book. The bank’s net NPA rose to Rs 11,114 crore, or 5.97 percent of net advances, from Rs 9,757.20 crore in the September quarter.

Yes Bank set aside Rs 24,765.73 crore in provisions during Q3, which led to a depletion of its capital.

The capital base--specifically the Core Equity Tier-1 ratio--fell to 0.6 percent at the end of the quarter compared to 8.7 percent in the September quarter. The minimum regulatory requirement stands at 7.375 percent. Overall capital adequacy ratio dropped to 4.2 percent from 16.3 percent in the preceding quarter.

It’s statutory liquidity ratio has breached the RBI’s minimum requirement and so has its liquidity coverage ratio. The bank has thus provided Rs 86 crore as penalty to the central bank.

Deposit Outflows

As on Dec. 31, 2019, the bank’s outstanding deposit base stood reduced to 1.65 lakh crore from Rs 2.09 lakh crore on Sep. 30, 2019. The lender continues to see an outflow of deposits since Dec. 31; its total deposits stood at Rs 1.37 lakh crore, as on Mar. 5.

The outflow of deposits was most marked in the savings account segment, where typically low value deposits are kept with the bank. As on December 31, savings account deposits dropped to Rs 29,764 crore from Rs 44,579 crore a year ago. Similarly, term deposits fell to Rs 1.12 lakh crore at the end of the third quarter, from Rs 1.48 lakh crore last year.

Advances came down to Rs 1.86 lakh crore vs Rs 2.24 lakh crore in September. Domestic corporate advances fell to Rs 90,695 crore as on December 31, from Rs 1.46 lakh crore a year ago. Retail advances increased to Rs 41,289 crore from Rs 37,117 crore in the same period
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AIBEA Supports For Government Undertaking of 'Yes Bank', Demands Accountability of RBI

All India Bank Employees' Association (AIBEA) on Saturday said the Reserve Bank must be held accountable and the government should start taking all the private sector banks under its fold.

"At the same time, in order to protect the interest of the depositors and bank's clients, Yes Bank should be immediately brought under the public sector. One by one private banks, which are being glorified by the government, are failing. It is high time that the government should take a call and repeat 1969 - all the private banks should be brought under public sector," said C H Venkatachalam, General Secretary, AIBEA.

"The fact that Yes Bank has been ailing with various problems including issues of divergence, non-disclosures, mounting bad loans, inadequate capital, inability to augment capital, etc.

"But the RBI took its own sweet time and after a lot of damage, it has announced the moratorium creating panic amongst the depositors."

The bank union said the RBI, being the regulator, cannot be unaware of the ongoing in Yes Bank.

"If today, the bank has to be closed down due to mismanagement, the RBI cannot extricate itself from the responsibility. Every time, the RBI is failing to take timely steps to prevent such bank debacles. Same thing was observed during United Western Bank and Global Trust Bank," Venketachalam said.

The AIBEA said there were repeated audit reports which pointed out glaring lapses and yet the RBI did no act. Same thing has happened now.

"The government must make RBI answerable and accountable. It is strange that the RBI is putting various banks under Prompt Corrective Action - PCA restrictions. In fact, we feel that the government should bring the RBI under PCA norms," he added.


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Govt asks SBI to form consortium to buy stake in YES Bank: Report


The government has approved a plan for country’s largest lender, State Bank of India, to lead a consortium that will buy a stake in private lender Yes Bank, news agency Bloomberg reported on Thursday.

State Bank of India has been authorized to pick other members of the consortium and the announcement is expected soon, the report said.Following the development, shares of YES Bank jumped 9.56 per cent to hit a high of Rs 32.10 on BSE. Shares of state-run SBI fell 3.01 per cent to Rs 276.70.




As per media reports, SBI has been told to invest as a lead in a consortium in Yes Bank. Though we may see a big spike in price of Yes Bank and negative reaction in price of SBI, we recommend caution to retail investors. The critical thing to watch would be percentage dilution of equity taking into consideration the conversion of existing bonds issued by Yes Bank into equity," said Abhimanyu Sofat, Head Of Research, IIFL Securities.

Earlier in January, the chairman of the bank had expressed his strong belief that “some solutions will emerge” to bail out the private lender.

YES Bank has so far failed to bring a strategic investor. Reports recently suggested that the private bank had approached mutual funds for raising fresh equity capital worth $300-$500 million.


The private lender had earlier said it has delayed its third-quarter earnings as the bank is reviewing non-binding expressions of interest from four investors.

YES Bank had plans to raise up to $2 billion to shore up its capital base.

It had picked Cantor Fitzgerald, led by former Deutsche Bank global co-CEO Anshu Jain, and local investment banks IDFC Securities and Ambit Capital to raise funds that would help the lender expand its loan book.


Recently, the private lender received non-binding expressions of interest from investors including JC Flowers, Tilden Park Capital, OHA UK and Silver Point Capital.

Also, a media report last month suggested Hinduja Group was partnering with private equity firm Cerberus Capital Management LP in seeking to pick up a stake in embattled Yes Bank.

However, nothing materialised till date.




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This Private Bank's existance is in trouble - Which bank is capable to digest it?


Before it results in a tragedy for all of India’s banking, regulators need to step in and end the farce called Yes Bank Ltd. The latest shenanigans make it very clear that the authorities need to stop being spectators — and act.

The original cast has vanished. The co-founder who drove the country’s fifth largest private-sector bank into a ditch of bad corporate loans has sold out. Institutional shareholders are heading for the exit. Retail investors left holding more and more of the stock are waiting for lifesaving capital.

The new management keeps dangling improbable funding options — ranging from an unnamed global technology firm to a Canadian businessman living in a motel — only to strike them off the list of white knights.

Day Traders' Delight
The only thing ticking at the bank is the clock. Common equity tier 1 may just about manage to stay above the regulatory threshold of 8% by March. But 36% of capital is tied up in bad debt that’s yet to be provided for. More loan losses lie around the corner. With 40% of deposits coming from fickle wholesale sources, solvency and liquidity risks are high.


At a time when India’s financial system is choking on hundreds of billions of dollars of bad loans, the news coming out of Yes still manages to shake confidence.On Friday, the lender announced that the head of the board’s audit committee, appointed under previous management, had quit. Following whistle-blower allegations of undisclosed past criminal cases, the bank was examining whether Uttam Prakash Agarwal was “fit and proper” to be a director.

But Agarwal, who says the missed disclosures were an omission, pulled the trigger first. In a letter, he called for a forensic audit of the fundraising process — and its communication to the board and the public — to probe if it was “false, misleading or distorted.” The stock, down 88% over the past 17 months, fell more than 5% on Friday.

Following Agarwal’s salvo, the only way Chief Executive Officer Ravneet Gill can salvage the situation and his own reputation is by quickly raising around 3% of risk-weighted assets worth of capital. That’s a bare minimum. Yet after nearly a year in the job, the ex-Deutsche Bank AG veteran has little to show for his efforts. Most recently, the board ruled out taking money from Erwin Braich, the mysterious Canadian investor. And that, as far as one can see, is the end of the road in Gill’s search for an investor who will write a check in excess of $1 billion for a lender that’s still hurtling down a rabbit hole.

Fault Lines
An independent existence for Yes is increasingly unrealistic. There’s no safe way to shut it down without inviting system-wide panic. Depositors are already on the edge, trapped in a cooperative bank that failed. What else can be done?

I’ve previously explored the possibility of a merger with Kotak Mahindra Bank Ltd., which like Yes is also a private-sector lender. But Chairman Uday Kotak, whose good fortune has been all about saying no to loans to which Yes said yes, seems uninterested.

State Bank of India, India’s largest commercial lender by assets, may hate the idea of a forced merger. But let’s face it: No other banking balance sheet in India might be able to take over a lender with more than $31 billion in advances. More importantly, the SBI is a public-sector bank; if CEO Rajnish Kumar can be prevailed upon to swallow Yes, he can always be given some taxpayers’ funds to help with the indigestion.

Who Can Digest Yes?

Time is not on India’s side. Nominal GDP is expanding at its slowest in more than four decades. An implosion at the bank will be awful news for construction, real-estate and shadow banking, three crucial sectors starved of funding that comprise a quarter of Yes Bank’s loan book. This negative feedback loop could be more damaging to confidence than even the surprise bankruptcy of infrastructure financier IL&FS Group in September 2018, which led to an economy-wide surge in borrowing costs.

After Agarwal’s letter to the stock exchanges, the regulator and the government, none can pretend to be in the dark any longer about the state of affairs at Yes Bank. It’s time they brought the curtain down on this theater of the absurd.
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Yes Bank reports net loss in Q2FY20


Private sector lender Yes Bank today reported a net loss of ₹600 crore in the quarter ending September 30, hurt by a one-time deferred tax adjustment of ₹709 crore on account of change in corporate tax rate regime. Excluding this impact, adjusted net profit was at ₹109 crore. Yes Bank had reported a net profit of ₹964 crore profit in the same quarter of the previous year.

Yes Bank's bottomline was also hurt by a rise in provisions to ₹1,336 crore in the September quarter, as compared to ₹939 crore in the year-earlier quarter.

The asset quality worsened on a sequential basis. Gross NPA as a ratio of total advances rose to 7.39% in September quarter as compared to 5.01% in the June quarter. Net NPA rose to 4.35% as compared to 2.91%.

Yes Bank had on Thursday disclosed that it has received a binding offer from a global investor for an investment of $1.2 billion, subject to regulatory and and other necessary approvals.

The bank in its earnings report today also said that it has received multiple other non-binding but strong bids from marquee domestic and global institutional investors and family offices.

"The board is evaluating all bids to ascertain the most optimal capital solution for the bank," it added. Yes Bank had raised $273 million via QIP route in the September quarter.

Yes Bank shares today closed 5.5% lower ahead of the earnings announcement, following a nearly 25% rally on Thursday.

Yes Bank also reported a rise in employee headcount by 2,466 during the second quarter, mainly in retail/branch banking.

Here are the highlights of Yes Bank Q2 earnings:

Net interest income at ₹2,186 crore in Q2FY20 and it includes the impact of ₹228 crores due to fresh slippages during the quarter

Net interest margin at 2.7%

Non-interest income at ₹946 crores

10% sequential growth in retail banking fees

Operating expenses at ₹1,673 crores for Q2FY20

Pre-provisioning operating profit at ₹1,458 crores for Q2FY20

Provisions of ₹1,336 crore.

Book Value at ₹109.0 per share as on September 30, 2019

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Yes Bank Q1 result, Profit down 91%

Yes Bank Ltd today said its first quarter net profit dropped 90.97% on the back of lower other income and higher provisioning.

The bank posted a net profit ₹113.76 crore for the three months ended 30 June compared to₹1,260.36 crore in the year-ago period. Profit was lower than ₹148 crore estimated by a Bloomberg poll of 13 analysts.

Other income, which includes core fee income, dropped 24.88% to ₹1,272.66 crore in the three months from ₹1,694.14 crore a year ago.

Yes Bank's provisions during the quarter increased more than two folds to ₹1,784.11 crore as against ₹625.65 crore in the year-ago quarter. In the Dec-Mar quarter, the bank had set aside ₹3,661.70 crore in provisions.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 2.78% to₹2,280.84 crore from ₹2,219.14 crore in the corresponding period last year.

Yes Bank's gross non-performing assets (NPAs), as a percentage of total advances, were at 5.01% in the June quarter compared with 3.22% in the March quarter and 1.31% in the year-ago June quarter.

Post-provision, the net NPA ratio was at 2.91% against 1.86% in the Dec-Mar quarter and 0.59% in the year-ago quarter.
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Yes Bank surprisingly reports its first ever quarterly loss

Private sector lender Yes Bank Ltd on Friday reported its first-ever quarterly loss at 1,506.64 crore on the back of higher provisions. The bank would have reported a steeper loss if not for a tax write-back of 832 crore in the March quarter.
Meanwhile, the bank’s board approved the appointment of Ravinder Kumar Khanna and Shagun Kapur Gogia as additional directors (non-executive, non-independent) with immediate effect. Interestingly, in June 2013, Yes Bank’s board turned down Gogia’s application to be nominated as a director on the bank’s board.
Profit in the March quarter was lower than the 1,023.9 crore estimated by a Bloomberg poll of 23 analysts. Total provisions during the quarter increased more than nine-fold to 3,661.7 crore, as against 399.64 crore in the year-ago quarter. In the December quarter, the bank set aside 550.23 crore in provisions.
Yes Bank’s other income, which includes core fee income, dropped 62.58% to531.69 crore from 1,420.97 crore in the year-ago quarter.
Net interest income (NII)—the difference between interest earned on loans and paid on deposits—increased 16.33% from 2,154.24 crore in the March quarter of 2018 to 2,505.93 crore in March quarter 2019. Its net interest margin (NIM)—a key measure of profitability—fell 30 basis points (bps) on a year-on-year basis and 20bps, sequentially.
In a filing to the stock exchanges, it said gross slippages in the fourth quarter stood at 3,481 crore, of which 552 crore was on account of an airline, and529 crore on account of a stressed infrastructure conglomerate.
The bank has an outstanding loan of2,528 crore to various companies and special purpose vehicles of Infrastructure Leasing & Financial Services, of which 2,442 crore has been classified as non-performing asset (NPA), with a specific provision of 610 crore prior to the National Company Law Tribunal order dated 25 February.
“Subsequently, the bank has retained classification for the balance exposure of85.9 crore as standard, although this exposure would be required to be classified as NPA," Yes Bank said in the stock exchange filing.
Its gross NPAs, as a percentage of total advances, were at 3.22% in the March quarter compared with 2.10% in the December quarter, and 1.28% in the year-ago quarter. Post-provision, the net NPA ratio was at 1.86%, against the 1.18% in the December quarter, and 0.64% in the year-ago quarter.
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RBI rap: Yes Bank denies any wrong-doing


Days after RBI pulled up Yes Bank for making a report marked 'confidential' public, the private lender put up a stout defence, saying the NPA divergence information was in due compliance. 

"The bank in its assessment was of the view that the disclosure pertaining to divergence was a UPSI and required prompt dissemination to the Stock Exchanges in order to ensure compliance with Sebi (PIT) Regulations and the NSE & BSE circulars," Yes Bank said in a regulatory filing to the NSE. 

The bank said it divulged the RBI report to ensure information symmetry. 


"Immediately on receipt of the RAR report, to mitigate and to avoid any further speculation, misuse or leakage of the UPSI, it was decided to disseminate the information regarding "Divergence" to the stock exchanges, so as to ensure information parity, instead of withholding this information till finalization of the Annual Results," the bank further stated. 

The bank "has not made any undue advantage or benefit by disseminating the UPSI. Hence, we humbly submit that the bank has not misrepresented or misled the stock exchanges/ investors in terms of Regulation 4(1)(c) of Listing Regulations". 

UPSI stands for Unpublished Price Sensitive Information. 

YES Bank had earlier informed stock exchanges that the RBI has not found any divergence in the asset classification and provisioning done by the lender during 2017-18. 

But RBI has maintained that ‘nil’ divergence is not an achievement to be published and is only compliance with the extant Income Recognition and Asset Classification norms. 


The regulator also pointed out that its Risk Assessment Report (RAR) identified several other lapses and regulatory breaches in various areas of the bank's functioning and the disclosure of just one part of the RAR is viewed as a deliberate attempt to mislead the public. 

However, the RBI’s harsh view of Yes Bank’s move has confused lenders on whether it is a good practice to disclose NPA divergence, even though regulatory guidelines make it compulsory to disclose it in their notes to accounts.  

Source- Economic Times
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Yes Bank find new CEO to replace Rana Kapoor

Ranveet Singh Gill, the veteran banker has been appointed as the new MD and CEO of Yes Bank.
Yes, Bank also received approval from RBI for the tenure of its current MD&CEO till January 31, 2019, and for appointing a successor by February 01, 2019.

Yes, Bank said in a statement, “The Bank has received RBI approval for its new MD & CEO, Mr Ravneet Singh Gill for him to join on or before March 1, 2019."

Mr Gill, currently the chief of Deutsche Bank’s India operations, will replace Rana Kapoor. Gill joined Deutsche Bank in 1991 and has worked across different businesses including corporate banking, capital markets and wealth management.

In September last year, RBI had asked Rana Kapoor, Managing Director & CEO of Yes Bank, to step down by the end of January, sending its stock plunging and causing several resignations from its board. The central bank had asked the lender to find a new CEO by February 1.
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YES Bank Q3 net profit falls 7%

YES Bank on Thursday reported a 6.9 per cent YoY fall in its net profit at Rs 1,001.85 crore for third quarter (October-December) of FY19. It had posted PAT of Rs 1,076.87 crore in the year-ago period. Sequentially, the figures grew 3.9 per cent. 
Total deposits grew 29.7 per cent YoY to Rs 222,758 crores. 
GNPA (Gross non performing assets) improved sequentially to 1.32 per cent from 1.60 per cent last quarter, NNPA improved to 0.59 per cent from 0.84 per cent last quarter and PCR improved to 55.6 per cent from 47.8 per cent, it said in its press release. 

Exposure to Il&FS group stood at Rs 2,530 crore. NII grew 41.2 per cent YoY to Rs 2,666.4 crore; sequentially it grew at 10.3 per cent; NIMs (net interest margins) were stable at 3.3 per cent, the company said. 

YES Bank has once again delivered satisfactory performance across income growth, margins, profitability and Capital accretion, despite the recognition and provision impact from a stressed Infrastructure conglomerate. Retail Assets growth momentum continues, while growth in corporate business segments has been rebalanced after witnessing strong market share driven growth over the last few preceding quarters," said Rana Kapoor, Managing Director & CEO, YES Bank.
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Yes Bank Q2 profit falls 4%

Yes Bank Ltd on Thursday reported a 3.8% decline in its September quarter as bad loans continued to mount and provisions soared.
The bank reported Rs2620.69 crore exposure to troubled Infrastructure Leasing & Financial Services Ltd as of September 2018.
Net profit for the quarter stood at Rs964.70 crore against Rs1002.73 crore a year ago. According to 18 Bloomberg analyst estiamtes, the bank was expected to post a profit of Rs1,273.80 crore.

Provisions and contingencies soared 110.26% to Rs939.98 crore in the quarter from Rs447.06 crore a year ago. On a quarter-on-quarter basis, they surged 50.2% from Rs625.65 crore. Other operating expenses jumped 40.1% to Rs930.59 crore.
Net interest income (NII), or the core income a bank earns by giving loans, was up 28.25% to Rs2,417.55 crore versus Rs1,885.09 crore last year. Other income was at Rs1,473.45 crore, up 18% from Rs1,248.44 crore a year ago.
Gross non-performing assets (NPAs) was up 42% to Rs3,866.08 crore at the end of the September quarter from Rs2,720.34 crore in the same quarter last year.
As a percentage of total loans, gross NPAs fell to 1.6% as compared with 1.82% in the year-ago quarter. Net NPAs were at 0.84% against 1.04% a year ago.

Advances for the quarter grew 61.2% to Rs2.40 trillion while deposits rose 41.05% to Rs2.23 trillion.
Recently Yes Bank reported to exchanges that Reserve Bank of India denied a three-year extension to its chief executive officer Rana Kapoor and asked him to step down after 31 January 2019.
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