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Private sector lender YES Bank posted a net loss of ₹1,506.64 crore in the fourth quarter of 2018-19 as provisions jumped more than eight-fold.
It had registered a net profit of ₹1,179.4 crore in the quarter ended March 31, 2018, although its net profit for the third quarter of last fiscal fell by about 7 per cent annually.
This is probably the first net loss for the private sector lender since 2004. The bank’s provisions shot up to ₹3,661.70 crore for the January to March 2019 quarter, against ₹399.64 crore in the same period a year ago.
“Net provisions stood at ₹5,778 crore in 2018-19, including contingent provisions of about ₹2,100 crore, specific loan-loss provisions of ₹1,270 crore, investment MTM provision of ₹243 crore, and other provisions of about ₹48 crore,” YES Bank said in a statement on Friday.
For the full fiscal 2018-19, the bank posted a net profit of ₹1,720.27 crore, against ₹4,224.56 crore in 2017-18.
“We will lay emphasis on granularity, sustainability and digitalisation while maintaining highest standards on compliance and prudence in risk. Our robust transaction banking, retail and digital platforms will allow us to accelerate granularity in our businesses,” said Ravneet Gill, Managing Director and CEO, YES Bank, adding that it will continue expanding the corporate business.
Net interest income
For the quarter ended March 31, 2019, YES Bank’s net interest income grew by 16 per cent to ₹2,506 crore, against ₹2,154.2 crore. Its net interest margin was at 3.1 per cent for the fourth quarter of the fiscal and 3.2 per cent for 2018-19.
Non-interest income, however, fell by over 62 per cent to ₹532 crore for the fourth quarter of the fiscal, against ₹1,420.97 crore a year ago.
The bank’s gross non-performing assets also shot up to ₹7,882.56 crore as on March 31, 2019, or 3.22 per cent of gross advances, against 1.28 per cent a year ago. Net NPAs also rose to ₹4,484.85 crore as on March 31, 2019, or 1.86 per cent of net advances, against 0.64 per cent as on March 31, 2018.
The board of directors of YES Bank also approved the appointment of Shagun Kapur Gogia and Ravinder Kumar Khanna as Additional Directors (Non-Executive, Non-Independent). Gogia is the daughter of YES Bank’s co-founder, late Ashok Kapur.
The board also recommended a dividend of ₹2 per equity share. Further, it recommended renewal of an aggregate limit of $1 billion for raising equity capital.
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