Private sector lender Yes Bank on Friday announced a net loss of Rs 3,787.75 crore for the March quarter of fiscal 21, compared to a profit of Rs 2,629 crore a year ago, resulting from the depreciation of its additional Tier I bonds. Indeed, the bank had recorded a net loss of Rs 3,668 crore in Q4FY20, which widened in Q4FY21 due to a 22.5% year-over-year drop in other (year-on-year) net interest income (NII) and a 7.6% increase in provisions.
The bank saw further slippages worth Rs 11,800 crore in the fourth quarter, with Rs 8,000 crore coming from the moratorium book. Chief Executive Officer and CEO Prashant Kumar said, “We believe the numbers (on asset quality) have spiked, with March results showing improvement.” Most of the stress comes from industries that have been under pressure from Covid, such as hospitality, travel and commercial real estate, he added.
Clawbacks amounted to Rs 1,960 crore and upgrades amounted to Rs 654 crore. Yes, the Bank did technical write-offs of non-performing assets (NPAs) worth 10,300 Rs crore. The gross NPA ratio increased five basis points (bps) sequentially to 15.41% and the net NPA ratio increased by 184 bps to 5.88%. The bank has guided for cash recoveries worth Rs 5,000 crore in FY22 and it expects slippages to be less than that.
Yes Bank’s provisions increased 7.6% year-on-year to Rs 5,240 crore and its provision coverage ratio (PCR) fell to 78.6% from 81.5% at the end of December. The bank’s cumulative provisions, including that of Covid, stood at Rs 26,558 crore in March 2021, compared to Rs 32,010 crore at the end of December 2020.
The advance book fell 5.5% year-on-year to Rs 96,426 crore as of March 31. Retail advances represented 30% of the loan portfolio at the end of March 2021, up from 28% a quarter ago. Management expects advance growth of over 15% in FY22, driven by 20% growth in retail books and SMEs.
Deposits stood at Rs 1.63 lakh crore at the end of March, up 55% year-on-year and 11% sequentially. The current account savings account (CASA) ratio stood at 26.1% in Q4FY21, below 26.6% a year ago.
The bank’s net interest margin (NIM), a key measure of profitability, slipped 180 basis points (bps) sequentially to 1.6%.
The Basel III capital adequacy ratio stood at 17.5% as of March 31. The Common Equity Tier-I (CET-I) ratio stood at 11.2% at the end of March.
Yes Bank shares on BSE ended flat at Rs 14.55 on Friday. The results were published after the close of trading.