YES Financial institution reports surprise Q4 lack of Rs 1,507 crore as provisions leap 9 times YoY – Financial Instances

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YES Financial institution reports surprise Q4 lack of Rs 1,507 crore as provisions leap 9 times YoY – Financial Instances


Private lender

YES Financial institution

on Friday reported a surprise lack of Rs 1,506.64 crore for the quarter ended March 31 on spike in

provisions and contingencies

. Analysts in an ET NOW poll had estimated a profit of Rs 1,050 crore.

The bank had posted a discover of Rs 1,179.44 crore for the corresponding quarter.

Provisions jumped to Rs 3,661.70 crore in Q4 from Rs 399.64 crore within the twelve months-ago period.

The bank has categorized Rs 2,442 crore loan to IL&FS group as non-performing asset (NPA). It moreover equipped Rs 12.89 crore for traditional accounts of IL&FS group.

Win hobby earnings (NII) jumped 16.30 per cent to Rs 2,506 crore on a YoY foundation, while discover hobby margin came in at 3.10 per cent.

Earnings Highlights

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Asset quality of the lender deteriorated with the percentage of harmful non-performing assets (GNPA) jumping to 3.22 per cent in Q4 over 2.10 per cent in December quarter. The GNPA stood at 1.28 per cent within the corresponding quarter final twelve months.

Win NPA moreover spiked to 1.86 per cent over 1.18 per cent on a sequential foundation. It used to be at 0.64 per cent within the twelve months-ago period.

In absolute terms, harmful NPA jumped to Rs 7,882.56 crore over Rs 2,626.80 crore on a yearly foundation. Win NPA elevated to Rs 4,484.85 crore from Rs 1,312.75 crore YoY.

Working profit of the lender declined 38 per cent YoY to Rs 1,323.40 crore in Q4.

“I am assured that our robust transaction banking, retail and digital platforms will enable us to inch granularity in our corporations. Our digital innovation is chopping edge and will abet us differentiate our product proposition and embody a broader client universe. Importantly we can proceed growing our corporate industry which is the foundation on which YES Financial institution has been constructed,” acknowledged Ravneet Gill, MD and CEO at YES Financial institution.

The board of the corporate has proposed a dividend of Rs 2 per equity piece, self-discipline to the approval of shareholders. It moreover authorized elevating of up to Rs 20,000 crore by capacity of debt and $1 billion — in a single or more tranches — by approach of equity shares.

YES Financial institution acknowledged the discover provisions of Rs 3,662 crore for Q4 and Rs 5,778 crore for FY19 included contingent provisions of Rs 2,100 crore, explicit loan loss provisions of Rs 1,270 crore, funding MTM provision of Rs 243 crore and other provisions of Rs 48 crore.

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