Net loss Yes Bank K4 expands marginally to Rs 3,788 cr

Net loss Yes Bank K4 expands marginally to Rs 3,788 cr

Business News: Net loss Yes Bank K4 expands marginally to Rs 3,788 cr.

YES Bank today reported a net loss of Rs 3,787.75 crore for the quarter ended March versus a net loss of Rs 3,668.3 crore in the quarter a year ago due to an increase in provisions. Lender provisions in the quarter increased 7.5% yoy to Rs 5,240 crore. On a sequential basis, supplies increased by 138%.

The bank’s net interest income plummeted 22.5% yoy to Rs 987 crore, while interest income jumped 37% to Rs 816 crore. Provisions increased 7.5% during the quarter to Rs 5,240 crore compared to Rs 4,872 crore in March 2020.

Despite the large slips, the bank has prudently made accelerated provisions reflected in the Provision Coverage Ratio (PCR) for NPA at 79%, YES Bank said. On Friday, the bank’s NSE scrip closed 0.7% higher at Rs 14.60. During the quarter, the bank’s total income fell to Rs 4,805.30 crore from Rs 5,818.59 crore in the same period a year ago, Yes Bank said in a regulatory filing.

“A deferred tax asset of Rs 9,354 crore as of March 31, 2021 is recognized in the balance sheet, as basic financial projections approved by the Board of Directors, there is reasonable certainty of having sufficient taxable income to allow the realization of said deferred tax asset as specified in Accounting Principle 22 (Income Tax Accounting), “it reads.

The current second wave of the COVID-19 pandemic has led to the re-imposition of localized lockdowns in various parts of the country, he said, adding the extent to which the pandemic will impact the bank’s results will depend on ongoing and future developments, which are highly uncertain.

On March 5, 2020, the Reserve Bank imposed a moratorium on the distressed private sector lender, including capping withdrawals at Rs 50,000 per depositor, after discovering that the new management was unable to raise urgent core capital. it had dropped far below the mandatory level.

Subsequently, the Union Cabinet authorized a bailout package for the bank which involved an investment of 7,250 crore by the State Bank of India (SBI). Four private lenders have also pledged an additional Rs 3,100 crore as part of the bailout.