YES Bank slumps 10% on second-largest quarterly loss in Q2, recovers later

In a conference call with analysts, Ravneet Gill, MD & CEO of YES Bank, said the fresh capital would come in by December-end. The binding offer of $1.2 billion came from a North American investor

Shares of YES Bank slipped 10 per cent to Rs 59.95 per share in the morning deals on Monday after the bank reported its second largest quarterly (consolidated) loss of Rs 629 crore for the September quarter of FY20 due to a spurt in bad loans. On a standalone basis, the loss was Rs 600.08 crore. 

This was the second biggest loss for the bank since its listing after Rs 1,506.60 crore loss in March quarter this year. The bank had posted a net profit of Rs 964.70 crore in Q2FY19.

The bank's gross bad loans jumped to 7.39 per cent of the gross advances (GNPA ratio) as on September 30, 2019, from 1.60 per cent a year ago. Net NPAs (NNPA ratio) too rose to 4.35 per cent as against 0.84 per cent. Provisions for bad loans and contingencies rose to Rs 1,336.25 crore as against Rs 942.53 crore earlier, the bank said.

Meanwhile, gross slippages for the quarter stood at Rs 5,945 crore.

"YES Bank had created provisions of Rs 2,100 crore towards these identified accounts in March quarter. During the quarter ended June 30, the bank utilised Rs 1,399 crore and for the quarter ended September 30, the bank utilised the balance from the pool towards specific provisioning of NPAs," the bank said in a statement.

At 9:43 am, the stock pared some of its losses and was trading 3.75 per cent lower at Rs 64.10 apiece, as against a 0.5 per cent rise in the benchmark S&P BSE Sensex. About 11 crore shares have changed hands on the NSE and BSE till the time of writing of this report.

On Thursday, October 31, the stock jumped 35 per cent in the intra-day trade after the Bank informed the exchanges that it had received a binding bid worth $1.2 billion to be used for capital infusion. 

In a conference call with analysts post results, Ravneet Gill, managing director and chief executive of YES Bank, said the fresh capital would come in by December-end. The binding offer of $1.2 billion came from a North American investor, he added.

Further, the bank has also received offers for fund infusion of close to $3 billion from various investors, including private equity (PE) players and domestic mutual funds (MFs).