May need to reverse Rs 800 cr in interest income: YES Bank's Prashant Kumar

A back-of-the-envelope calculation says interest reversal will be to the tune of Rs 700-800 crore in that particular quarter, says Kumar

YES Bank will soon complete a year after the RBI-driven restructuring. While balance sheet is stabilising, Prashant Kumar, managing director and chief executive, tells Subrata Panda & Abhijit Lele that the bank will need to reverse interest income when the Supreme Court lifts the stay on treating loans as non-performing assets (NPAs). Edited excerpts:

After improving net interest margin (NIM) in Q3FY21, the bank has guided for a likely fall when the Supreme Court verdict on asset quality issue comes in. What will be the extent of the impact on NIMs?

Once the SC verdict comes, you have to reverse the entire