Reports 25.1% rise in Q2 net as gross
NPAs double to Rs 2,720 crore
NPAs double to Rs 2,720 crore
ON
GROWTH TRACK
GROWTH TRACK
· The
gross advances of the bank grew 34.9% led by a robust growth in retail and
corporate advances
gross advances of the bank grew 34.9% led by a robust growth in retail and
corporate advances
· NIL
for the Quarter rose 33.5% to Rs 18,885 crore.
The fees and commissions rose 35.4% to Rs 1,248 crore
for the Quarter rose 33.5% to Rs 18,885 crore.
The fees and commissions rose 35.4% to Rs 1,248 crore
Mumbai: Yes bank on
Thrusday said it has addressed the issue of non-performing assets (NPAs) raised
by a Reserve Bank of India (RBI) audit, which showed the bank had under-reported
its NPAs by Rs. 6,355 crore for 2016-17.
Thrusday said it has addressed the issue of non-performing assets (NPAs) raised
by a Reserve Bank of India (RBI) audit, which showed the bank had under-reported
its NPAs by Rs. 6,355 crore for 2016-17.
The
bank said it has undertaken upgrades sale to asset reconstruction companies
(ARCs) and downgraded the accounts by setting aside adequate provisions to
buffer the loans it was confident of recovering.
bank said it has undertaken upgrades sale to asset reconstruction companies
(ARCs) and downgraded the accounts by setting aside adequate provisions to
buffer the loans it was confident of recovering.
On
Thursday, YES Bank share rose 1.24% to close at Rs 331.70 on the BSE. The
management in an analyst call said about Rs. 2,986 crore of the Rs. 6,355 crore
is upgraded from March to date with an approval of the Board and statutory
auditors, while another Rs. 1715.85 crore has been repaid about Rs. 440 crore
of loans in this pool have been sold to ARCs.
Thursday, YES Bank share rose 1.24% to close at Rs 331.70 on the BSE. The
management in an analyst call said about Rs. 2,986 crore of the Rs. 6,355 crore
is upgraded from March to date with an approval of the Board and statutory
auditors, while another Rs. 1715.85 crore has been repaid about Rs. 440 crore
of loans in this pool have been sold to ARCs.
After
the upgrades and selling off loans, the divergence has now come down to Rs. 1,200
crore, according to the management. Higher under-reporting also forced the
bank to hike its provisions to Rs. 443 crore during the quarter, much higher
than the Rs. 250 crore of provisioning it normally does during a quarter.
the upgrades and selling off loans, the divergence has now come down to Rs. 1,200
crore, according to the management. Higher under-reporting also forced the
bank to hike its provisions to Rs. 443 crore during the quarter, much higher
than the Rs. 250 crore of provisioning it normally does during a quarter.
The
divergence reported in 2016-17 is also higher than the divergence reported in
2015-16 when RBI had redflagged Rs. 4,925.6 crore of loans as NPAs when the
bank had reported gross NPAs of Rs. 748.9 crore.
divergence reported in 2016-17 is also higher than the divergence reported in
2015-16 when RBI had redflagged Rs. 4,925.6 crore of loans as NPAs when the
bank had reported gross NPAs of Rs. 748.9 crore.
Rana
Kapoor, Managing director and chief executive officer, YES Bank told analysts
in the concall, “Over the past two quarters, the amount of loans picked by the
regulator have either been repaid or recognized by the bank. The entire impact
of the divergence is absorbed in the second quarter despite the RBI giving us
the audit report just a few days back. That is 81% of the exposure is either
repaid, resolved or sold.”
Kapoor, Managing director and chief executive officer, YES Bank told analysts
in the concall, “Over the past two quarters, the amount of loans picked by the
regulator have either been repaid or recognized by the bank. The entire impact
of the divergence is absorbed in the second quarter despite the RBI giving us
the audit report just a few days back. That is 81% of the exposure is either
repaid, resolved or sold.”
Gorss
NPAs doubled to ts. 2,720.34 crore, which is 1.82% of the gross advances of the bank. This
compares to 0.92% as of the end of june quarter and 0.39% in the year ago
quarter.
NPAs doubled to ts. 2,720.34 crore, which is 1.82% of the gross advances of the bank. This
compares to 0.92% as of the end of june quarter and 0.39% in the year ago
quarter.
Despite
the substantial divergence and rise in NPAs YES bank reported a 25.1% rise in
net profit to Rs. 1,003 crore on the back of robust growth in advances and also
its other income and net interest imcome. This is the first time that the bank
is reporting a four-digit net profit in its 12 years of existence.
the substantial divergence and rise in NPAs YES bank reported a 25.1% rise in
net profit to Rs. 1,003 crore on the back of robust growth in advances and also
its other income and net interest imcome. This is the first time that the bank
is reporting a four-digit net profit in its 12 years of existence.
However,
the asset quality continues to haunt the bank. The high growth in profit helped
the bank raise provisions for the NPAs.
the asset quality continues to haunt the bank. The high growth in profit helped
the bank raise provisions for the NPAs.
The
gross advances of the bank grew 34.9% to Rs. 148,675.3 crore, led by a robust
growth in retail and corporate advances. Net interest income (NII) for the
quarter rose 33.5% to Rs. 18,885 crore.
gross advances of the bank grew 34.9% to Rs. 148,675.3 crore, led by a robust
growth in retail and corporate advances. Net interest income (NII) for the
quarter rose 33.5% to Rs. 18,885 crore.
***
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