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Yes Bank posts lower net profit for FY19 at ₹1,084 cr due to NPA divergence

New Delhi: Yes Bank on Tuesday reported a lower net profit of 1,084.03 crore for 2018-19 compared to 1,720.28 crore announced earlier due to higher non-performing assets assessed by the Reserve Bank.

The divergence in net non-performing assets (NPAs) of the bank –the difference in bad loans reported by the bank and the assessment done by the RBI — stood at 2,299 crore for 2018-19, Yes Bank said in a regulatory filing.

Divergence in gross NPAs was 3,277 crore as of 31 March, 2019.

The private sector lender had reported a net profit of 1,720.28 crore in 2017-18.

“The adjusted (notional) net profit after tax for the year ended March 31, 2019 after taking into account the divergence in provisioning was at 1,084.03 crore,” it said.

The divergence in provisioning was at 978 crore.

Additionally, the bank said that it intends to convene a meeting of its board of directors by the end of this month to finalise its capital raise.

Market regulator Sebi has put in place tighter disclosure norms, directing all listed banks to disclose any divergence in bad loan provisioning within 24 hours of receiving RBI’s risk assessment report, rather than waiting to publish the details in their annual financial statements.

Banks, including Indian Bank, Union Bank of India, Bank of India, Indian Overseas Bank, Central Bank of India and Lakshmi Vilas Bank, have already reported their NPA divergences for last fiscal.

The disclosures need to be made in case the banks’ additional provisioning for non-performing assets (NPAs) assessed by the RBI exceeds 10 per cent of the reported profit before provisions and contingencies, and if the additional gross NPAs identified by the RBI exceed 15 per cent of the published incremental gross NPAs.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Source: Livemint