Yes Bank reversed cube, earned Rs 2629 crore revenue in March quarter

by Jeremy Spirogis
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New Delhi. Yes Bank of the non-public sector, which has been going via the disaster for the previous few months, has introduced surprising monetary outcomes for the January-March quarter. The financial institution made a shock revenue of Rs 2629 crore on this quarter, whereas Yes Bank had a lack of Rs 1507 crore in the identical quarter final yr. Yes Bank obtained this revenue from particular earnings from write-off of extra Tier-1 bonds. That is, this revenue of the financial institution shouldn’t be because of higher efficiency however as a result of help offered underneath the reduction scheme. Under the reduction scheme, the financial institution was allowed to write-off its extra Tier-1 bond funding of Rs 6,296.94 crore. The financial institution achieved this earnings by writing down bonds value Rs 8,415 crore. <! –

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                 If this particular earnings is eliminated, YES Bank incurred a lack of Rs 3668 crore, which is greater than double the lack of Rs 1507 crore in the identical quarter final yr.

HDFC Bank: Profits up 18 p.c to Rs 6928 crore in January-March

Decrease in NPA

However, Yes Bank's NPA ratio has improved. Yes Bank's gross (NPA) ratio was 18.87 per cent within the December quarter, which was 16.80 per cent within the March quarter. But it has elevated manifold in comparison with 3.22 per cent within the March quarter of final yr. On the opposite hand, Yes Bank web NPA ratio was 5.97 per cent within the December quarter, which was 5.03 per cent within the March quarter. But it additionally elevated considerably in comparison with 1.86 p.c within the March quarter of final yr. With this, the financial institution's provision (sudden bills) elevated from Rs 3,662 crore to Rs 4872 crore as in comparison with the earlier yr.

Deposit and curiosity earnings decreased

Yes Bank's capital adequacy ratio (that is the chance to capital ratio of a financial institution) fell to eight.5 p.c from 16.5 p.c a yr earlier. At the identical time, financial institution deposits fell by 53.7 per cent to Rs 1,05,364 crore and advances by 29 per cent to Rs 171443 crore. Yes Bank's web curiosity earnings (NII) additionally registered a big lower. The financial institution's NII declined by 49.16 per cent to Rs 1,274 crore. The financial institution's web curiosity margin declined from 3.1 per cent to 1.9 per cent. Net curiosity margin is the distinction between the curiosity earnings of the financial institution and the quantity of curiosity paid.

Yes financial institution's situation is poor

On March 5, the financial institution had eliminated the board of Yes Bank and imposed numerous restrictions in view of Yes Bank's poor situation and the monetary mess it brought on. However, the restrictions have been lifted on 18 March and RBI entrusted the financial institution's accountability to a brand new group of board members. Prashant Kumar, former Chief Financial Officer and Deputy MD of SBI, was appointed as the brand new MD and CEO of the financial institution. Not solely this, SBI, HDFC, Axis Bank, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank collectively invested Rs 10,000 crore to get Yes Bank out of the disaster.

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