YES Bank on Friday reported a net loss of Rs 3,787.75 crore for the quarter ended in March. The private lender posted a net loss of Rs 3,668.33 crore for the corresponding quarter last year.
YES Bank’s net interest income, the difference between interest earned and interest, declined 23% to Rs 987 crore in Q4FY21 against Rs 1,274 crore in the year-ago period.
“FY 21 was the year of rebuilding the foundation of YES BANK. Bank demonstrated significant improvement in performance across key indicators despite severe headwinds of Covid-19 & moratorium imposed on the bank in Mar’20,” the lender said. On 5 March, 2020, the Reserve Bank of India placed the crisis-hit YES Bank under a moratorium. The banking regulator took control of the YES Bank board and imposed a withdrawal limit from the bank accounts till 3 April, 2020.
Provisions in the March quarter rose 7.5% during the quarter to Rs 5,240 crore as compared to Rs 4,872 crore in March 2020. “Despite elevated slippages, the bank has prudently made accelerated provisioning reflected in the Provision Coverage Ratio (PCR) for NPA at 79%,” said Yes Bank.
The bank deposits have grown significantly by 55% year-on-year to Rs 1.62 lakh crore during the quarter ended March 2021. The provision coverage ratio declined to 78.6% in March quarter 2021, compared to 81.5% in previous quarter.
“Proactive provisioning of around Rs 250 crore towards COVID-19 related restructuring (around Rs 2,500 crore) is expected to be implemented in Q1FY22,” the lender said.
“The bank has a minimum cash recovery target of Rs 5,000 crore for FY22,” Prashant Kumar, chief executive officer said during the press conference. The lender made cash recovery of Rs 4,933 crore during the year from stressed assets, and will sustain growth in FY22, he added.
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