Yes Bank Q2 Results DECLARED! Check the performance of this private sector lender
Shares of the bank closed down 5.4% ahead of the results, and are down 63.4% year-to-date even though on Thursday, they jumped as much as 24% on the news of an equity investment from a global investor.
The Q2 results of private-sector lender Yes Bank have been declared Friday evening after market hours. The bank reported a bigger-than-expected loss. The results mark Mumbai-based Yes Bank`s fifth straight quarter of weak earnings. Here are TOP THINGS TO KNOW from Yes Bank's Q2 Results:-
-Net loss for the three months to Sept. 30 came in at 6 billion rupees ($84.73 million), compared with a profit of 9.65 billion rupees a year ago. Analysts were expecting a loss of 3.10 billion rupees, according to Refinitiv data.
-Net interest income fell 9.6% to 21.86 billion rupees, while net interest margin, a key indicator of a bank`s profitability, declined to 2.7% from 3.3%.
-The results were also hurt by a one-time deferred tax asset adjustment of 7.09 billion rupees related to the bank`s shift to India`s new corporate tax structure, Yes Bank said.
-Chief Executive Officer Ravneet Gill, who took charge in March, last month warned that the credit squeeze in the economy had hurt the bank`s asset quality, which was already hammered by exposure to troubled infrastructure, aviation and housing finance companies.
-Gross bad loans as a percentage of total loans rose to 7.39% as of September-end from 5.01% in the previous quarter. It was 1.60% a year ago.
Pressed for capital, the bank has been in talks with investors. It said on Thursday it had received a binding offer of $1.2 billion from a global investor without giving further details.
Yes Bank has also received multiple other non-binding but "strong" bids from marquee domestic and global institutional investors and family offices, it said on Friday.
Common equity tier 1 ratio, a measure of a bank`s capital strength, stood at 8.7% at the end of the September quarter. Provisions for the quarter jumped 42.2% to 13.36 billion rupees.
Shares of the bank closed down 5.4% ahead of the results, and are down 63.4% year-to-date even though on Thursday, they jumped as much as 24% on the news of an equity investment from a global investor.
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