Money & Banking

YES Bank posts ₹600-cr loss on higher provisioning

Our Bureau Mumbai | Updated on November 01, 2019 Published on November 01, 2019

YES Bank slipped into the red, reporting a net loss of ₹600 crore in the quarter ended September 30, even as its asset quality deteriorated.

The private sector bank also disclosed that it has received various anonymous whistleblower complaints during the quarter alleging irregularities in its operations, which the lender is continuing to analyse.

The bottomline in the reporting quarter was impacted due to re-measurement of accumulated deferred tax asset resulting in a one-time additional charge of ₹709 crore and higher provisions.

YES Bank had reported a net profit of ₹965 crore in the year-ago period.

Net interest income (the difference between interest earned and interest expended) declined 10 per cent at ₹2,186 crore (₹2,418 crore in the year-ago period).

Non-interest income (comprising fees and commission, selling of third-party products, earnings from foreign exchange transactions, and profit/ loss on sale of securities) was down 36 per cent at ₹946 crore (₹1,473 crore).

The bank made provisions aggregating ₹1,336 crore, up 42 per cent vis-a-vis the year-ago period’s ₹940 crore.

The bank’s gross NPAs jumped ₹5,042 crore during the quarter to stand at ₹17,134 crore.

Gross NPAs in percentage terms rose to 7.39 per cent of gross advances against 5.01 per cent in the preceding quarter.

Whistleblower complaints

During the quarter/ half-year, the bank said it has received various anonymous whistleblower complaints alleging irregularities in its operations, which it is continuing to analyse.

The bank will consider the implications of ongoing work once the examination of this matter is completed, it added.

Published on November 01, 2019
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