In the eye of a storm ,Yes Bank reported a staggering Rs 18,654-crore loss for the December quarter due to higher recognition of dud 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 per cent of assets as of December 31, 2019, up from the preceding September quarter’s Rs 17,134 crore or 7.39 per cent, which forced the bank to set aside Rs 24,765 crore as provisions for the expected reverses and eroded the bottomline.
The bank’s board was superseded by the government on March 5, and the RBI had appointed former chief financial officer of SBI, Prashant Kumar, as the administrator.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.
Kumar is set to be its chief executive and managing director and the bank reported its results late on Saturday evening after what seems to be a marathon day of meetings.
The bank’s woes primarily stem from alleged corporate governance lapses under co-founder chief executive Rana Kapoor, who was arrested last weekend by the Enforcement Directorate and was booked under a fresh case by the CBI recently.
