Yes Bank posts loss of Rs 1,506.64 crore in Q4FY19; provisions up over 816%, gross NPA rise by 200% - all details here

Private lender Yes Bank has booked a net loss of Rs 1,506.64 crore during March 2019 (Q4FY19) quarter, against the net profit of Rs 1,179.44 crore in Q4FY18 and Rs 1,001.85 crore in Q3FY19. This is Yes Bank's first quarter result without Rana Kapoor, as the company is now led by CEO & MD Ravneet Gill. The net interest income (NII), however, jumped by 16.32% to Rs 2,505.93 crore in Q4FY19 as against Rs 2,154.24 crore in Q4FY18. On quarterly basis, the NII was down by 6.01% from Rs 2,666.41 crore in Q3FY19. NIMs at 3.1% and 3.2% for Q4FY19 and FY19 respectively. 

Talking about the Q4 results, Ravneet Gill, Managing Director and CEO of YES Bank, said, “I am excited to be part of this dynamic institution and on behalf of the entire leadership team reaffirm our commitment of building India’s finest and most admired financial services company. Further, I take this opportunity to thank all our stakeholders for their sustained support which has held the institution in great stead."

The most shocking data in Q4FY19 was Yes Bank setting aside over 9 times higher provisions compared to Q4FY18. Also, gross NPA came in three times higher in Q4FY19 than previous year same quarter.

Provisions were at Rs 3,661.70 crore in Q4FY19, up by 816.24% from Rs 399.64 crore in Q4FY18, while provisions spiked by 565.48% versus Rs 550.23 crore in Q3FY19. 

Also, the company's gross NPA surged by a whopping 200.08% to Rs 7,882.56 crore in Q4FY19, from Rs 2,626.80 crore in Q4FY18, while GNPA was higher by 52.80% from Rs 5,158.62 crore. In percentage terms, GNPA was at 3.22% from 2.10% in Q3FY19 and 1.28% in Q4FY18. 

Yes Bank stated that, no disclosure requirements under the RBI regulations on disclosures of divergences in asset classification and provisioning, pursuant to the conclusion of its FY18 RBI Annual Supervisory Process.

Gross Slippages of Rs 3,481 crores in Q4FY19 of which Rs 552 Crores was on account of an Airline company exposure that was performing as on March 31, 2019 and Rs 529 Crores on account of Stressed Infrastructure Conglomerate. 

For outlook ahead, Gill said, "In this phase of our journey, we will lay emphasis on granularity, sustainability and digitalisation while maintaining highest standards on compliance and prudence in risk. I am confident that our robust Transaction Banking, Retail and Digital platforms will allow us to accelerate granularity in our businesses. Our digital innovation is cutting edge and will help us differentiate our product proposition and embrace a broader client universe. Importantly we will continue expanding our Corporate business which is the
foundation on which YES Bank has been built.”

Post Contingency provision, Bank expects FY20 Credit Costs upto 125bps with expected further normalization in FY21. 

In a board meeting on Friday, Yes Bank approved appointment Ravinder Kumar Kharu1a and Shagun Kapur Gogia as Additional Director (Non-Executive Non-Independent), Indian Partners Representative Director(s), on the Board of the Bank with immediate effect.