Yes Bank reports Q2 loss at Rs 600 crore on tax hit while asset quality worsens

Private sector lender Yes Bank on Friday reported a whopping loss of Rs 600 crore in the second quarter of current fiscal year (Q2 FY20) due to a one-off deferred tax asset (DTA) adjustment of Rs 709 crore on account of change in corporate tax rate regime.

The lender had posted a profit of Rs 965 crore in the corresponding quarter last year. This is the second-biggest loss for the bank after Rs 1,507 crore loss in the January to March quarter.

Yes Bank said the gross non-performing assets (GNPAs) for Q2 FY20 jumped to 7.39 per cent from 5.01 per cent in Q1 FY20 and 1.6 per cent in Q2 FY19.

The gross NPAs increased to Rs 17,134 crore in the quarter ended September from Rs 3,866 crore in the year-ago period. Net NPAs moved up to Rs 9,757 crore from Rs 2,019 crore in the same period.

The percentage of net NPAs jumped from 0.84 per cent in Q2 FY19 to 4.35 per cent in Q2 FY20. The bank made provisions of Rs 1,336 crore for the quarter.

On the other hand, interest earned increased to Rs 7,386 crore from Rs 7,231 crore in Q2 FY19 while interest expended totalled Rs 5,200 crore in Q2 FY20 compared to Rs 4,813 crore in the corresponding period of the previous year.

On Thursday, Yes Bank said it has received a 1.2 billion dollar (about Rs 8,520 crore) binding offer for a stake purchase from a global investor. It has been trying to raise the capital to get over liquidity issues, fund growth and improve asset quality.

In the recent past, the bank has maintained that its fundamentals remain strong, capital and liquidity positions comfortably above the regulatory threshold, and outstanding exposure to the housing finance and real estate sectors totally secured.

Yes Bank is India's fourth-largest private sector bank with presence across all 28 states and 9 union territories.