Yes Bank News - Private-sector lender Yes Bank’s profit decreased by 60% year-on-year (y-o-y) to Rs 45 crore in the June quarter, due to a decrease in the total income of 33% year-on-year to Rs 6,107 crore. Non-financial income decreased 51% y-o-y to Rs 621 crore.
Bank management refused to share any details on its moratorium book. "It is very difficult to give a specific number in terms of the current number of clients benefiting from the moratorium and I would not want to fool anyone into giving this number. But we are definitely seeing positive improvements in this regard," said Prashant Kumar, managing director and CEO of Yes Bank.
Kumar shared some views on the repayment date to borrowers under the moratorium. He said that those who benefited from the moratorium would not necessarily be going to slip.
Yes Bank News - "Ninety-one percent of our customers who have availed the moratorium on the retail side have never been more than 30 days late in the past 12 months. Kumar said that shows the behavior of customers in their previous transactions with the bank, adding that 70% of collections are on the Retail side Resumed
"On the credit card side, 90% of normal collections are happening. On the MSMEs piece, 85% of our clients have never been more than 30 days late in the past 12 months."
Advances, as on June 30, were at Rs 1.64 lakh crore, down 30% year-on-year. Retail advances represented 23.4% of the loan portfolio at the end of June 2020, compared to 18% the previous year. Deposits reached Rs 1.17 lakh crore at the end of June, an increase of 11.4%, respectively, despite falling 48% y-o-y. The Current Account Savings Account (CASA) index was 25.8% in the first quarter of fiscal year 21, less than 30.2% the previous year. Kumar said that as a result of deposit growth, Yes Bank was able to meet its liquidity coverage ratio (LCR) requirements and also repaid 50% of the loans it received from the Reserve Bank of India. The bank's net interest margin (NIM), a key measure of profitability, rose 110 basis points (bp) sequentially to 3% accounting to Yes Bank News.
Yes Bank’s provisions decreased by 39% yo-y to Rs 1,087 crore and the provision coverage ratio (PCR) improved to 75.1% from 73.8% at the end of March. Standard advances include Rs 642 crore of COVID provisions made during the first quarter, with accumulated provisions for Coved up to Rs 880 crore.
The bank recognized a slip of Rs 45 crore during the first quarter of fiscal year 21, while swaps and promotions were Rs 160 crore. The loans of Rs 60 crore was canceled. Yes, the Bank delivered mixed asset quality performance in the first quarter, with GNPA increasing 50 basis points in a row to 17.3%. The bank attributed the consecutive increase in the proportion of total NPA to a decrease in advances due to sales and payments, in addition to the absence of new payments. The net NPA index decreased seven basis points to 4.96%.
According to Basel III, the capital adequacy ratio for the Bank of Basel was 8.6% as of June 30, and it is expected to rise to 20% after accounting for the recently concluded capital increase returns. The proportion of first level common shares (CET-I) reached 6.5% at the end of June and will increase to 13.4% after the capital injection.
Yes Bank News: Yes Bank’s shares ended 3.25% below their previous close of Rs 11.90 on Tuesday. The results were released after the close of trade.
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