INSUBCONTINENT EXCLUSIVE:
Mumbai: YES Bank swung to a loss in the second quarter ended September 30 due to higher provisions, lower other income and a one-time hit
from remeasurement of deferred tax assets with the bank moving to a lower 25% tax rate.
The bank reported a loss of Rs 600 crore compared
with a Rs 965-crore profit in the same quarter a year ago
Excluding the one-time Rs 709-crore tax impact, the bank would have made a net profit of Rs109 crore.
Provisions increased 41% to Rs 1336
crore but were lower than the Rs 1784 crore reported in the quarter ended June
Gross NPAs increased to 7.39% of total loans up from 1.6% last year and higher than the 5.01% reported in the quarter ended June 2019.
The
companies rated BB and below
There were also slippages of Rs 2220 crore from accounts outside and below the BB rating of which Rs106 crore was from SME and retail
loans.
The bank said it expects resolution of corporate slippages over the medium term including from cash recoveries
Total recoveries and upgrades during the quarter were at Rs 900 crore.
Other income dropped to Rs946 crore from Rs 1473 crore a year ago and
Rs 1273 crore reported in the quarter ended June
Total loan book fell 6.3% year-on-year to Rs 2.24 lakh crore from Rs 2.39 lakh crore a year ago
Net interest income, or the difference between interest earned on loans and that paid on deposits, fell 9.6% to Rs 2185 crore from Rs 2417
also declined to 2.7% from 3.3% a year ago
Retail advances recorded a robust 30% growth and now constitute 20% of the total advances, up from 14% a year earlier.
YES Bank reduced its
total exposure to electricity companies by around Rs 2300 crore and to non-banking finance companies by Rs 1750 crore, it said in a press
quarter after it raised $273 million through a QIP in August.