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Yes Bank's profitability to remain under strain for 12-18 months: Moody's

The lender is profitable on a full-year basis; provision for stressed loans much lower thann other banks

YES Bank Photo: Reuters

YES Bank Photo: Reuters

Abhijit Lele Mumbai
Global rating agency Moody’s today said the profitability of private sector Indian lender Yes Bank will remain under strain for the next 12-18 months as it provides for the stressed loans.

The country’s fourth largest lender booked a net loss of Rs 1,500 crore for the quarter ended March 2019, the first financial loss since its inception in 2004. The loss was driven by higher credit costs incurred non-performing loans (NPLs) and the creation of a contingent provision against a pool of identified stressed assets.

Its provision coverage ratio, at 33 per cent of total stressed loans, is significantly lower than the

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First Published: Apr 30 2019 | 4:19 PM IST

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