YES Bank June net down 92% on NPA woes

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Mumbai: Private lender Yes Bank’s June quarter net plummeted 92.44% to Rs 95.56 crore on a consolidated basis due to a Rs 6,232 crore addition to non-performing assets, which resulted the provisions to zoom.

This is the second consecutive quarter the bank has shown a massive hit on the bottomline since the new management under Ravneet Gill took over in March after the forced exit of promoter-chief executive Rana Kapoor over governance concerns by the RBI.

Its fresh slippages at Rs 6,232 crore nearly doubled if compared to the Rs 3,408 crore in the previous quarter, leading the gross non performing assets ratio to rise to 5.01% against 1.31% in the year-ago period and 2.91% three months ago.

The overall provisions galloped 184% to Rs 1,784 crore. It used Rs 1,399 crore of the Rs 2,100 crore in additional provisions made during the March quarter. Downgrade of two finance companies led to a Rs 1,109 crore hit in provisions during the reporting quarter.

The provision coverage ratio dropped to 43%, one of the lowest among private sector lenders. Despite this, it, however, maintained its credit cost guidance at 1.25% for the entire year, stating that the same stood at 0.32% for the first quarter.

At the time of announcing results last time, the bank had said it has identified assets of over Rs 10,000 crore which led it to provide extra Rs 2,100 crore and report a maiden quarterly loss.

Later, reports had also come about watchers expressing concern over its exposure to companies like DHFL, the Anil Ambani Group companies and also the realty sector.