A loss of Rs. 18,564 crore for the December quarter has been reported by the crisis-hit Yes Bank on Saturday. The bank, which was put under moratorium by the government last week, had reported a net profit of Rs 1,000 crore in the last year period and a loss of Rs 629 crore in the preceding September quarter.
Bank reports Rs 18,564 crore loss for December quarter
The share of the gross non-performing assets in the overall loans rose to 18.87 per cent i.e. Rs 40,709 crore as against 7.39 per cent i.e. Rs 17,134 crore in the preceding quarter, while the capital buffers also plummeted. The overall provisions of Rs 24,765 crore hurt the profitability the most as the same number had stood at Rs 1,336 crore in the last quarter period.
The capital adequacy ratio has fallen to 4.2 per cent, which is nearly a fourth of the 16.3 per cent it had reported at the end of the September quarter, and much below regulatory requirements.
The bank also reported a significant drop in its deposits. The bank disclosed that there had been an over Rs 44,000-crore dip in its deposits between September and December to Rs 1,65,000 crore, while there has been a sharp decline in interest earned, suggesting a dip in advances due to the lack of capital. It also lost deposits worth Rs 3,000 crore in the fourth quarter, which forced it to breach its minimum requirement of the cash reserve ratio and statutory liquidity requirement. Its deposits currently stand at Rs 1.37 lakh crore.
An inability to raise capital had resulted in the bank being put under moratorium last Thursday, including capping of withdrawals at Rs 50,000 per account for a month which is set to be lifted next week.
The RBI has appointed Prashant Kumar as the administrator, under whose supervision the results have been declared. Mr Kumar is set to be the chief executive and managing director of the bank under the reconstruction plan approved by the Union cabinet on Friday.
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