Yes Bank reports Rs 18,564 crore loss for Q4, 2019
YES Bank has reported a staggering Rs 18,654-crore loss for the December quarter due to higher recognition of dead assets on the books, and an erosion of capital buffers to the brink.
The gross non-performing assets shot-up to Rs 40,709 crore or 18.87 percent of assets as of December 31, 2019, up from the preceding September quarter’s Rs 17,134 crore or 7.39 percent, which forced the bank to set aside Rs 24,765 crore as provisions for the expected reverses and eroded the bottom-line.
The bank’s board was superseded by the government on March 5, and the RBI had appointed former chief financial officer of SBI, Prashant Kumar, as the administrator.
An inability to raise capital was cited as the primary reason for the actions, which also included it being put under a moratorium and a slew of restrictions, including capping of withdrawals at Rs 50,000 per account for a month.