YES BANK, is a high quality, customer-centric, and service-driven Bank. Since inception in 2004, YES BANK has grown into a ‘Full-Service Commercial Bank’ providing a complete range of products, services, and technology-driven digital offerings, catering to corporate, MSME & retail customers. YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES and its Mutual Fund business through YES Asset Management (India) Limited, both wholly-owned subsidiaries of the Bank. Headquartered in Mumbai, it has a Pan-India presence across all 28 states and 9 Union Territories in India including an IBU at GIFT City, and a Representative Office in Abu Dhabi.

The share price of Yes Bank Ltd fell ~5% intraday on 6th May 2020 ahead of its result. The results were declared post-market hours.

The bank's net interest income (NII) rose by 20% sequentially and fell by 49% YoY to Rs 1,271 crores during Q4FY20. NII for FY20 fell 31% YoY to Rs 6,794 crores from Rs 9,813 crores in FY19. The net interest margin (NIM) for Q4FY20 was 1.9%, an increase of ~50 bps over Q3FY20, and 2.2% for FY20. The Non-Interest income for Q4FY20 was Rs 597 crores, an increase of 12.3% on a YoY basis. Retail Banking fees have demonstrated resilience during the quarter despite lockdown and moratorium.

Gross non-performing assets (NPAs) saw a sharp rise of 16.80% as compared to 3.22% in the same period in Q4FY19. In absolute terms, the gross NPA figure for the March quarter stands at Rs 32,878 crores as compared to Rs 7,883 crores in Q4FY19, a rise of over 300%. On a sequential basis, the performance of the gross NPA figure has improved by over 20%. The NPA of the bank stood at 5.03% as compared to 5.97% in Q3FY20 and 1.86% in Q4FY19. The provision coverage ratio (PCR) has improved to 73.77% as compared to 43.10% in the same period last year. The retail and MSME asset quality continues to demonstrate resilience.

The lender has made provisions to the tune of Rs 3,775 crores in the quarter ended on March 31, 2020, as compared to Rs 2,830 crores in Q4FY19. Sequentially, the bank had set aside Rs 18,544 crores in December quarter as provisions and contingencies. The provisions for Investments include Rs 1,228 crores on net profit interest (NPI) to a housing finance company which is 100% now, Rs 2,012 crores on NPI exposure to various entities of a diversified conglomerate, Rs 238 crores for COVID-19 and Rs 204 crores for June 7, 2019 RBI circular.

At the end of March 2020, the bank's Total Capital to Risk (Weighted) Assets Ratio (CRAR) is at 6.4% after considering Total Tier II Capital Funds. However, Tier II ratio currently capped at 2% resulting in Total CRAR at 8.5%.

Overall, the lender's operating profit for the quarter was Rs 106 crores, down 92% YoY from Rs 1,323 crores in Q4FY19. The bank registered a loss of Rs 3,668 crores from its ordinary activities after making additional provisions for NPI and NPA.

Excluding extraordinary item (AT 1 write down) of Rs 8,415 crores.

Following the RBI guidelines relating to COVID-19 regulatory package, the bank has offered a moratorium of 3 months on the payment of all unpaid installments and / or interest, as applicable, falling due between March 1, 2020 and May 31, 2020 to all eligible borrowers classified as Standard as on Feb 29, 2020. The eligible borrowers with overdue exposures as on Feb 29, 2020 had a Total Outstanding of Rs 14,956 crores as on March 31, 2020, of which NPA standstill is Rs 2,713 crores against which provisioning of Rs 238 crores.

Yes Bank is now owned by a collective of India’s largest financial institutions and headed by a former State Bank of India executive. As part of a rescue plan, the SBI invested Rs 6,050 crore in Yes Bank and holds 49%. Private sector lenders such as ICICI Bank Ltd., Axis Bank Ltd., Housing Development Finance Corporation Ltd., Kotak Mahindra Bank Ltd., Bandhan Bank Ltd. and Federal Bank Ltd. also bought into Yes bank as part of the rescue plan.

According to the reconstruction plan, the investors can’t sell 75 percent of the shares issued for the period of 3 years.

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