90 percent of Yes Bank's customers who availed the moratorium never defaulted in the last 12 months, said Prashant Kumar, MD and CEO of the bank, after the lender released its June quarter earnings.
Speaking about defaults on the moratorium, Kumar said, "People are just keeping cash with them. It does not mean that they would turn into NPAs.”
"When everybody was asking for the moratorium or dispensation from the regulator and the government, and once these dispensations have been given and when there are uncertain times, people are just keeping cash with them," he added.
On the retail side, 20-25 percent of customers availed the moratorium whereas, on the MSME and corporate side, 15-20 percent opted for the option, he said.
Yes Bank on Tuesday reported a 60 percent fall in its standalone net profit to Rs 45.44 crore for the first quarter ended June 30. It had posted a net profit of Rs 113.76 crore in the same period a year ago. Deposits grew by 11 percent driven by the zero cost current account deposits.
In terms of asset quality, Kumar said, “In our case, on the retail side it is only 13 percent of the portfolio, which is unsecured and there is only 1 percent of the portfolio, which has been given to the self-professionals otherwise it is to the salaried class. So depending on the situation and the customer behavior and the cash coming back to these accounts, we are not seeing any adverse happenings in our retail and MSME... Book is very good and we believe the book would continue to be great.”
Deposits stand at Rs 1.17 lakh crore as on June 30, 2020, he said. “Every day we are seeing a better trajectory and deposit appreciation,” he added.
On provisions, Kumar said, “We have made 10 percent provision because that was the regulatory guideline. So we are having a provision of Rs 880 crore against the outstanding of Rs 7,800 crore which is little more than 10 percent.”