Yes Bank reports Rs 18,564-cr loss for Dec quarter

Yes Bank reported on Saturday a staggering Rs 18,654-crore loss for December quarter due to higher recognition of dud assets on books, and an erosion of capital buffers to brink.

gross n-performing assets shot-up to Rs 40,709 crore or 18.87 per cent of assets as of December 31, 2019, up from preceding September quarter's Rs 17,134 crore or 7.39 per cent, which forced bank to set aside Rs 24,765 crore as provisions for expected reverses and eroded bottomline.

bank's board was superseded by government on March 5, and RBI had appointed former chief financial officer of SBI, Prashant Kumar, as administrator.

An inability to raise capital was cited as primary reason for 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 bank reported its results late on Saturday evening after what seems to be a marathon day of meetings.

bank's woes primarily stem from alleged corporate governance lapses under co-founder chief executive Rana Kapoor, who was arrested last weekend by Enforcement Directorate and was booked under a fresh case by CBI on Friday.

Kapoor's successor Ravneet Gill had chosen to report stress in March 2019 quarter, leading for maiden quarterly loss, and followed it up with two more quarters of weak results.

For December quarter, bank informed exchanges that common equity tier-I ratio had fallen to 0.6 per cent as against a mandated requirement of 7.375 per cent, and added that it had breached liquidity ratios as well.

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"se conditions, along with or matters, indicate that a material uncertainty exists that may cast significant doubt on Bank's ability to continue as a going concern," its auditors wrote in a te.

financial stress and actions taken by RBI may also have a bearing on depositor confidence and withdrawal behaviour will be "uncertain", auditors warned.

bank disclosed that re had been an over Rs 44,000-crore dip in its deposits between September and December to Rs 1,65,000 crore, while re has been a sharp decline in interest earned, suggesting a dip in advances due to lack of capital.

Meanwhile, on vexed issue of future of additional tier-I bondholders, auditors said bonds could be utilised for improving its CET-1 capital buffers.

In tes to accounts, bank said slipps up to Saturday had been included in results as against rmal practice of sticking to end of quarter date.

bank had sought a permission to defer its reporting of financial results to Saturday when Gill was in helm, pointing out to difficulties it posed to capital raising exercise, which never materialised.

Under Kumar, it went ahead with plan to disclose numbers and administrator has also said that numbers for December quarter would reveal true extent of stress present on books.

In quick time, RBI had mooted an SBI-led reconstruction plan, which focuses on raising nearly Rs 11,000 crore in capital with help from Yes Bank's private sector peers.

" Bank's Administrator has made an assessment of its ability to continue as a going concern and is satisfied that proposed capital infusion and bank's strong customer base and branch network will enable Bank to continue its business for foreseeable future, it said in tes to accounts.

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