YES Bank dips over 5% post Q4 results

The stock dipped 6.5% to Rs 1,501 on BSE in early morning trade.

YES Bank  dipped 6.5% to Rs 1,501 on BSE in early morning trade as the asset quality of the bank slipped, with gross non-performing assets (NPAs) or bad loans rising to 1.52% of gross advances as on March 31, 2017 (Q4FY17), as against 0.85% in previous quarter and 0.76% a year ago. Net NPAs rose to 0.81% of net loans disbursed from 0.29% earlier.

The private sector lender had reported a 30.2% year on year (YoY) rise in net profit at Rs 914 crore for the last quarter of 2016-17. Net interest income (NII) rose by 32.1% at Rs 1,640 crore on YoY basis.

“In absolute terms, GNPA doubled to Rs 2,019 crore led by one large lumpy account that slipped during the quarter (as per RBI directive; expected to recover in Q1FY18). This includes one borrower with gross exposure of 0.69% of gross loans (Rs 911 crore) and net exposure of 0.52% (Rs 684 crore) which is expected to be recovered in near term,” analysts at Motilal Oswal Securities said in results update.

Analysts at Antique Stock Broking expects YES Bank to remain under pressure in the near term as this sharp deterioration in asset quality has come in as a sudden surprise however expect it to recover gradually on the back of its strong growth momentum and steady return ratios.

At 10:18 am; the stock was down 4% at Rs 1,542 on BSE as compared to 0.10% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 4.59 million shares changed hands on the BSE and NSE.