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Private sector lender YES Bank reported a standalone net loss of a Rs 18,560.31 crore for the December quarter.
The bank had a net profit of Rs 1,001.85 crore in the same period last fiscal.
In what seems to have been a clean-up of the lender’s balance sheet after the Reserve Bank of India superseded the board, YES Bank also reported 18.87 per cent of gross advances or Rs 40,709.20 crore in the quarter ended December 31, 2019 as against 2.1 per cent in the same period a year ago.
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Posting a huge loss of ₹18,560 crore, it has breached key capital and liquidity thresholds, casting a doubt on its ability to continue as a going concernNet NPAs stood at Rs 11,114.72 crore or 5.97 per cent of net advances as on December 31, 2019 as against 1.18 per cent a year ago.
The bank’s total income declined to Rs 6,268.50 crore in the October to December 2019 quarter compared to Rs 8,849.81 crore in the same period last fiscal.
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Provisions shot up to Rs 24,765.73 crore in the quarter under review from Rs 550.23 crore in the same period last fiscal.
“The increase in NPAs as a consequence of additional slippages and provision coverage ratio has resulted in higher provisioning and a loss in the quarter and year to date results,” YES Bank said in a regulatory filing late on Saturday night.
From the quarter ended December 31, 2019, the Bank has considered slippages in NPAs post the period end till the date of the financial results, while determining NPAs and related provisioning requirements. the change resulted in recognition of additional loans of Rs 5,150.2 crore as NPAs and related provisioning requirements of Rs 772.5 crore for the quarter ended December 31, 2019, it further said.
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However, the said lock-in period will not apply to any shareholder holding less than 100 shares.Additionally, considering the economic environment and the significant increase in NPAs in the quarter ended December 31, 2019, the Bank has decided, on a prudent basis, to enhance its Provision Coverage Ratio on its NPA loans over and above the RBI loan level provisioning requirements,
As a result, the Bank recognised additional provisions of Rs 15,422.0 crore in the quarter and enhanced its PCR from 43.1 per cent as on September 30, 2019 to 72.7 per cent at December 31, 2019, it said.
YES Bank further said that its CET 1 ratio was below the regulatory minimum requirements of 7.375 per cent and so its Tier I and Tier II ratio is restricted to 1.5 per cent and 2 per cent respectively.
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