YES Bank Q2 results: YES Bank posts Rs 600 crore net loss in Q2; asset quality declines

YES Bank Q2 results: Private lender YES Bank on Friday reported a net loss of Rs 600 crore for the second quarter ended September 30, 2019, impacted by one-time deferred tax adjustment of Rs 709 crore due to change in corporate tax rate regime. Excluding the one-time tax impact, adjusted profit after tax stood at Rs 109 crore, the bank said in an exchange filing.

"The Mumbai-headquartered bank had posted net profit of Rs 964.70 crore in the same quarter last year," YES Bank said in a filing to the Bombay Stock Exchange.

This was the second biggest loss posted by YES Bank since its listing in May 2005. The bank had posted its biggest loss of Rs 1,506.60 crore in March quarter this year.

The bank's net interest income (NII), or the core income a bank earns by giving loans, declined 9.6 per cent to Rs 2,186 crore in Q2FY20 from Rs 2,418 crore in Q2FY19. Net interest margin (NIM) for the quarter stood at 2.7 per cent.

The other income (non-interest income) decreased by 19.5 per cent to Rs 946 crore against Rs 1,473 crore in the year-ago period.

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The operating profit of the bank dipped 38.4 per cent to Rs 1,458 crore in Q2FY20 versus Rs 2,366 crore in Q2FY19.

YES Bank's asset quality declined during September quarter, with gross non-performing assets (NPAs) ratio rising sharply to 7.39 per cent versus 1.60 per cent in the year-ago quarter. Net NPA stood at 4.35 per cent as compared to 0.84 per cent in the corresponding quarter last year. in absolute terms, Gross NPAs stood at Rs 17,134 crore and net NPAs were 9,757 crore in the September quarter.

During July-September quarter, gross slippages were at Rs 5,945 crore and recoveries stood at Rs 867 crore, Yes Bank said.

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The provisions of the bank shoot up by 42.2 per cent to Rs 1,336 crore as compared to Rs 940 crore made in the year-ago quarter. The bank's provisions in the June quarter stood at Rs 1,784.11 crore.

Capital adequacy ratio of the bank stood at 16.3 per cent as compared to 17 per cent in the year-ago period. As on September 30, the bank's total balance sheet stood at Rs 346,576 crore compared to Rs 371,647 crore in previous year period, registering a Y-o-Y decline of 6.7 per cent.

At the end of September quarter, the bank had a network of 1,123 full-fledged branches and ATMs network stood at 1,459.

The bank said in the exchange filing that it has received a binding offer from a global investor for an investment of $1.2 billion, subjected to regulatory and other necessary approvals. During the September quarter, YES Bank successfully raised $ 273 million through qualified institutional placement (QIP) route.

"It has received multiple other non-binding but strong bids from marquee domestic and global institutional investors and family offices. The board is evaluating all bids to ascertain the most optimal capital solution for the bank," it said in the filing.

Ahead of Q2 earnings, shares of YES Bank closed trade at Rs 66.60 apiece, down 5.46 per cent, against previous close on the Bombay Stock Exchange.

Edited by Chitranjan Kumar