Yes Bank comprehensive con call takeaways for Q3 FY21 result

After posting the Q3 results yesterday, Yes Bank Concall highlighted few details which will further help investors to get an insight into operations of the Bank and know how the management have been performing.

Asset Quality highlights:

Standstill NPA:

This book is worth Rs 83.22 bn and has an overlap of Rs 12.64 bn with the restructured book, leaving a net exposure of Rs 70.58 bn. Most of the standstill NPA book has emerged from the real estate and hospitality sectors of the corporate segment.

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Overdue advances in the 61-90 day bucket:

This book is worth Rs 65.37 bn and has an overlap of Rs 31.05 bn with the restructured book, leaving a net exposure of Rs 34.32 bn.

Restructured book:

This is the Covid-19-related restructured book and the portion of this book that does not have an overlap with the aforementioned portions of stressed book amounts to Rs 36.92bn.

Total size of stressed book

The 3 key portions of stressed book together form a total non-overlapping stressed book of Rs 185.51 bn. This Rs 185.51 bn has no overlap with the legacy stressed book of Rs 420 bn.There is a restructured book in the legacy stressed book as well but that is a separate book where restructuring has been implemented, whereas the Covid-19-related restructured book has restructuring invoked.

31-60 day bucket (largely outside of aforementioned stressed book)

This book is worth Rs 123.16 bn and has an overlap of Rs 27.75 bn with the restructured book. This Rs 25.75 bn is part of the Rs 36.92 bn that is part of the aforementioned stressed book. According to management, the book at risk is the aforementioned Rs 185.51 bn total stressed book.

Provisions:

The outstanding Covid provisions, effectively on the stressed book of Rs 185.51 bn, are Rs 26.83 bn.

Collection efficiency:

The retail collection efficiency is 96%.Management did not disclose wholesale collection efficiency stating that they look at throughput and utilisation for the wholesale book, with the throughput having improved but the utilisation not having improved.

Recovery:

There has been a cash recovery of Rs 15.12 bn for the quarter leading to a P&L benefit of Rs 12.83 bn. Management stated that there could be a recovery of 50% on an aggregate basis.
Liabilities traction:

CASA:

There has been an improvement in CASA ratio after some quarters. YES Bank sold 0.22 mn CASA accounts during the quarter compared with 0.15mn in the sequentially previous quarter.

Loan growth:
 
Against a target of Rs 100 bn for the quarter, the retail and SME disbursement amounted to Rs 120 bn. The corporate disbursement during the quarter amounted to Rs 20bn, in line with business strategy.

ECLGS:

The cumulative disbursement under ECLGS (both 1.0 and 2.0) is Rs 32 bn. The ECLGS disbursement in Q3 FY21 was about Rs 10 bn, most of it being under ECLGS 2.0.

Capital Adequacy:

The Board has cleared an enabling resolution for capital raise of upto Rs 100 bn via equity or debt.

Net interest margin:

YES Bank has not carried out any interest reversal on any part of the stressed book worth Rs 185.51 bn, including on the standstill NPA. Once NPAs fructify, interest would have to be reversed from the date of recognition of NPA.