Private Yes Bank under NPA cloud
27 Oct 2017 10:05 PM IST
Mumbai: Private lender Yes Bank has said that its September-quarter net profit grew 25 per cent to 1,002 crore, but bad loans increased massively after the RBI's assessment showed that it had under-reported NPAs in the last fiscal by Rs 6,355 crore. The central bank's annual risk-based supervision for 2016-17 concluded this month.
Yes Bank had reported gross NPAs of Rs 2,018.6 crore in the previous fiscal. However, the gross NPAs, as assessed by the RBI, stood at Rs 8,373.8 crore, leading to a divergence of Rs 6,355.2 crore.
While the divergence in net NPAs as on March 31, 2017, stood at Rs 4,819.4 crore, the provision as assessed by the central bank was put at Rs 2,482.1 crore. The bank had reported a provision of Rs 946.3 crore for the year. Yes Bank said the net impact of the retrospective slippages has been reflected in the results for the quarter ended September 30. During the quarter, gross NPAs in absolute terms rose to Rs 2,720.34 crore against Rs 1,364.38 crore in the preceding quarter and Rs 916.68 crore in the same quarter last year. The percentage of gross NPAs increased to 1.82 per cent against 0.97 per cent sequentially.
Recently, Axis Bank had shocked the Street when it reported a difference of Rs 5,633 crore in NPAs for the period ended March 31, 2017. On Wednesday, HDFC Bank said that the RBI had asked it to classify one account as NPA. It is feared that other banks may also report divergence for the period ended March 31, 2017.
Yes Bank, however, said of the total exposure under RBI's assessment, around 81 per cent has been repaid/resolved or classified as standard.
During the second quarter, Yes Bank reported a net interest income (interest earned minus interest expended) of Rs 1885 crore, a growth of 33.5 per cent over last year.
While total assets showed a growth of 26.7 per cent to Rs 2,37,394.1 crore, total deposits were up 23.4 per cent over last year at Rs 1,57,989.8 crore. Further, the low-cost CASA ratio stood at a healthy 37.2 per cent
"The bank's asset quality continues to demonstrate resilience after duly incorporating the full impact of the RBS observations for 2016-17," said Yes Bank MD & CEO Rana Kapoor.
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