Yes Bank's management team has been on a recovery drive. From attaching properties of diamond traders to going after honchos of beleaguered NBFC's, the bank is leaving nothing to chance. Speaking to CNBC-TV18, Prashant Kumar, MD & CEO, Yes Bank said that the recovery target is there for the entire stressed book but the pandemic has led to a delay in recovery.
“Recovery target would be for the entire stressed book; it is an issue about the timing. Because of COVID, what we are seeing is that the targets which we were expecting during the current financial year—that has slowed down a bit. But I think we are absolutely on track and during the current year and going forward I think we will be able to recover,” he said.
On Dish TV, he said, “Every case has its own merits and reasons for taking a specific course of action. In the case of Dish TV, we are evaluating the different options.”
He further added that there are a number of suitors for Dish TV and that they are looking for the best deal.
Speaking about the reduction in operating cost, Prashant said, “We are targeting cost reduction of at least 10 percent year-on-year (YoY), but because of COVID everything is not working in the way it used to work in the past. So, I think that is helping us to reduce costs further.”
On hiving off Yes Bank’s bad assets to an SPV, he said, “We already have a provision coverage of almost 76 percent on our loan book and this loan book with 76 percent coverage where the estimates of loss given default (LGD) is something around 60-65 percent. So, I think that kind of loan assets can very easily move to SPV.”
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