Stock Market

Yes Bank profit falls 7% in Q3; Provisions surge on IL FS hit

   Download Android App    Share in      FullScreen   CheckVideos

Mumbai: Yes Bank’s profit fell 7 per cent in the third quarter ended December 2018, compared with a year-ago, as the bank had to make a hefty provision for loans given to debt laden ILFS.

Net profit fell to Rs 1,001 crore, or Rs 4.3 per share, from Rs 1,077 crore, or Rs 4.7 per share a year ago. Total provisions increased to Rs 550 crore from Rs 421 crore a year ago as the private lender had to set aside Rs 508 crore as NPA provisions, including Rs 478 crore for loans linked to ILFS. Senior group president Rajat Monga said the bank’s credit costs will increase to 80 basis points of its total loan book, up from the bank’s guidance of 70 basis points at the start of the year due to slippage from the ILFS loan.

One basis point is 0.01 percentage point. Gross NPAs increased to 2.10 per cent of the bank’s loan book, up from 1.72 per cent a year ago and higher than 1.60 per cent reported in the quarter ended September 2018.

The bank’s provision coverage ratio dropped to 44 per cent from 48 per cent in September 2018. “We believe that the provisions are adequate as we expect to see some results from the asset sales initiated in this account in the next three to six months.

There is already some sufficient and visible interest in these businesses,” said Monga. Yes Bank has a total exposure of Rs 2,530 crore to ILFS out of which Rs 1,913 crore is classified as NPA with a provision of 25 per cent. The remaining Rs 617 crore, including Rs 529 crore exposure to the maritime companies of the infrastructure group, is still considered as standard and is hence being provided at 15 per cent. Operationally, however, the bank did well with loan book increasing 42 per cent and net interest income (NII) grew 41 per cent, led by an identical growth in the bank’s loan book. The bank’s stock rose 8 per cent as investors welcomed the appointment of new CEO Ravneet Gill who will take over from March 1.

Yes Bank had to appoint a new CEO after promoter CEO Rana Kapoor was denied an extension by the RBI last year. The bank’s board will meet on January 29 to consider a transitory arrangement in February until Gill takes over from March 1. The bank’s board also appointed two additional directors on its board, replacing Vasant Gujarathi and R Chandrashekhar, both of whom had quit the bank in November.

Former additional chief secretary of Gujarat Maheswar Sahu and former chief information officer at HDFC Bank Anil Jaggia have been appointed additional directors.




Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021

Buy Our Merchandise (Peace Series)

 

Contribute US to Start Broadcasting


It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm

STRIPE

Details
Category: Stock Market


21