Private sector lender YES Bank’s net profit rose sequentially to Rs 129 crore in the second quarter ended September 30 this year from Rs 45 crore in the first quarter ended June 30. The bank had posted a loss of Rs 600 crore in Q2 of the previous financial year.
Net interest income (NII) rose 3.4 per cent sequentially to Rs 1,973 crore in Q2 from Rs 1,908 crore in the previous quarter. On year-on-year (YoY) basis, NII was down by 9.7 per cent from the base of Rs 2,186 crore in the second quarter of the previous year.
Private sector lender YES Bank expects to bring down credit-to-deposit (C/D) ratio to below 100 per cent by March 2021, from the current levels of 122 per cent in order to bring a balance in the asset-liability equation. The C/D ratio was 122.9 per cent in September, down from 140.2 per cent in June. It was at 162.7 per cent in March.
Bank officials said while it was possible to bring down the ratio below 100 per cent much earlier, YES Bank, too, has to look at interest earning for which credit expansion is equally important.
Shares of YES Bank extended their decline itnto second straight day, down 17 per cent to Rs 21.20 in the intra-day trade, on the BSE on Monday on the back of heavy volumes after the bank on Friday fixed floor price for its proposed follow-on public offer (FPO) at Rs 12 per share and a cap of Rs 13 per unit. In the past two trading days, the stock has tanked 20 per cent from a level of Rs 26.65 on the BSE.
Shares of YES Bank recorded their sharpest intra-day gain -- 58 per cent -- to Rs 40.40 on the BSE on Monday in an otherwise weak market after the Union Cabinet approved the reconstruction of the crisis-hit private sector lender as per the scheme proposed by Reserve Bank of India (RBI).
At 10:34 am, YES Bank was trading at Rs 38.85, up 52 per cent against its previous day’s close of Rs 25.55 on the BSE. In comparison, the S&P BSE Sensex was down 4.8 per cent at 32,483 points. The counter has seen huge trading volumes with a combined 106 million shares changing hands on the NSE and BSE so far.
The union government on Saturday notified the YES Bank reconstruction scheme. In line with the scheme, the moratorium on the private lender will be lifted on March 18.
The government has also constituted a four-member board wherein Prashant Kumar, the current administrator of the bank, has been appointed as the managing director and the chief executive officer (MD&CEO) of the bank. Sunil Mehta, the former non-executive chairman of Punjab National Bank, has been appointed the non-executive chairman.
As part of the YES Bank restructuring plan, Life Insurance Corporation of India (LIC) would buy around 1.35 billion shares at a price of Rs 10 apiece, according to a report by business channel CNBC-TV18.
On Thursday, State Bank of India (SBI) had said it would infuse Rs 7,250 crore into ailing YES Bank to pick up to 49 per cent equity as part of the Reserve Bank of India-mandated bailout plan.
The moratorium on Yes Bank could have a transitory impact on most corporates exposed to the bank, and delays in resuming normal services may impact the near-term liquidity of some of its customers, rating agency Ind-Ra said.
India Ratings and Research (Ind-Ra) has carried out a first-cut assessment of the impact of the recently imposed moratorium on Yes Bank's...withdrawals till April 3, 2020. The disruption could be transitory for most corporates exposed to the bank, given the administrator's statement of resuming the full operational status by next week, the rating agency said.
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