HomeMarket NewsStocks NewsYes Bank falls almost 5% as slippages rise in first quarter

Yes Bank falls almost 5% as slippages rise in first quarter

Yes Bank's gross nonperforming assets (GNPA) ratio improved but remained at a very elevated 13.4 percent. Prashant Kumar MD and CEO of Yes Bank said that the bank has provided for more than 80 percent of its Rs 48,000 crore bad-loan portfolio. 

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By CNBCTV18.com July 25, 2022, 12:57:03 PM IST (Updated)

2 Min Read
Yes Bank falls almost 5% as slippages rise in first quarter



Yes Bank slippages rose in the first quarter of the current fiscal to Rs 1,072 crore versus Rs 802 crore in the previous quarter. The a
nnualised slippage ratio has increased to 2.3 percent versus 1.77 percent.

Speaking to CNBC-TV18, Prashant Kumar MD and CEO of Yes Bank said, " I think at the beginning of the year, we have given guidance of having slippage below 2 percent. So even this slippage is something around like if you have a yearly calculation, it will be around 2.2. But this time, there was an unexpected slippage of one account. Otherwise, we are quite confident the overall slippage for the whole year would be below 2 percent," he said.

The Yes Bank shares slipped 4.7 percent during the morning trade and at 11:30 am the shares were down 3.7 percent.

The gross non performing assets (GNPA) ratio improved but remained at a very elevated 13.4 percent. Transfer of stressed loans of up to September 2021 for resolution through the recently announced scheme with J C Flowers Asset Reconstruction Company will take GNPAs down to 1.52 percent.

The bank has provided for more than 80 percent of its Rs 48,000 crore non-performing asset portfolio. 

"We have a provision coverage of 82 percent on the entire pool basis. On the security receipts (SR) we need to make the provisions as per the ageing, one is the MTM definitely but I think the bigger thing would be in terms of the ageing as provisioning requirements are similar for the NPAs and for the SRs," said Kumar.

Yes Bank's last 3-month performance in the stock market


The private sector lender reported a net profit of Rs 310.63 crore on a standalone basis as against Rs 206.84 crore in the year-ago period and Rs 367.46 crore in the preceding March quarter.

On a consolidated basis, its core net interest income grew 32 percent to Rs 1,850 crore in April-June on the back of 14 percent increase in advances and 0.30 percent expansion in the net interest margin to 2.4 percent.

The non-interest income declined 10.1 percent to Rs 781 crore, largely due to the reverses in the treasury operations and the bank management said excluding the impact of the treasury impact, the other income was up 35 percent.

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