YES Bank posts Rs 16,418.02 crore net loss in FY20; asset quality worsens

YES Bank posted a standalone net loss of Rs 16,418.02 crore for the financial year ending March 31, 2020. The private lender had reported a profit of Rs 1,720.27 crore at the end of financial year 2018-19. In the March quarter of FY20, the bank benefitted from income from write-down of additional tier 1 (AT1) bonds worth Rs 6,296.94 crore, after deducting taxes. This write down helped the bank post net profit of Rs 2,628.61 during the Q4 FY20, as opposed to a net loss of Rs 1,506.64 crore in the year-ago period.

Net Interest Income (NII), the difference between interest earned and interest expended, declined to Rs 6,805 crore during FY20, as compared to Rs 9,809 crore reported during the previous financial year. YES Bank said its NII for the fiscal under review suffered due to higher slippages and shrinkage in loan book. Interest earned by YES Bank during FY20 stood at Rs 26,066.61 crore, as compared to 29,624.75 crore in FY19. YES Bank's operating profit declined to Rs 3,518 crore in FY20, from Rs 8,135 crore posted at the end of FY19.

ALSO READ: YES Bank share price falls over 5% ahead of Q4 earnings

YES Bank saw its asset quality worsen substantially during FY20. In its investor presentation, the lender declared that 63 per cent of its corporate investments have been declared non-performing investments. Gross NPAs rose to Rs 32,877.59 crore, or 16.8 per cent of gross advances, during the fiscal under review, as compared to Rs 7,882.56 crore, in the previous financial year. Net NPAs grew Rs 8,623.78 crore, 5.03 per cent of net advances, crore during the fiscal 2019-20, from Rs 4,484.85 crore, 1.86 per cent of net advances reported during fiscal 2018-19. YES Bank's provisions and contingencies skyrocketed to Rs 32,758.43 crore during FY20, in comparison to Rs 5,777.56 crore seen during the previous fiscal.

ALSO READ: Adani Enterprises FY20 profit jumps 59% to Rs 1,138 crore; revenue up 8%

Capital Adequacy Ratio of YES Bank was pegged at 8.5 per cent at the end of FY20, as opposed to 16.5 per cent seen at the end of FY19. The bank's Tier I ratio was below RBI's regulatory minimum, and thus its Tier II ratio has been restricted to 2 per cent, YES Bank said in its filing to the exchanges.

Deposits fells sharply during the fiscal under consideration, plummeting to Rs 1.05 lakh crore as on March 31, 2020. YES Bank had posted deposits to the tine tune of Rs 2.28 lakh crore on March 31, 2019. Its CASA Ratio, as on March 31, 2020, was 26.6 per cent, down from 33.1 per cent reported an year ago.

This is the first financial result posted by YES Bank since RBI kickstarted its reconstruction scheme for the lender. So far, eight private financial institutions, including SBI, ICICI Bank, HDFC, have acquired stakes in YES Bank as part of the reconstruction scheme.

ALSO READ: Marico FY20 results: Profit flat at Rs 1,085 crore as coronavirus lockdown hits business