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    YES Bank’s FY19 profit shrinks on Rs 2,299 crore NPA divergence


    Adjusted profit for FY19 after taking into account divergence in provisioning was Rs 1,084 cr.


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    New Delhi: Yes Bank on Tuesday reported a lower net profit of Rs 1,084.03 crore for 2018-19 compared to Rs 1,720.28 crore announced earlier due to higher non-performing assets assessed by the Reserve Bank.

    The divergence in net non-performing assets (NPAs) of the bank --the difference in bad loans reported by the bank and the assessment done by the RBI -- stood at Rs 2,299 crore for 2018-19, Yes Bank said in a regulatory filing.

    The private sector lender had reported a net profit of Rs 1,720.28 crore in 2018-19.

    "The adjusted (notional) net profit after tax for the year ended March 31, 2019 after taking into account the divergence in provisioning was at Rs 1,084.03 crore," it said.

    The divergence in provisioning was at Rs 978 crore.

    Additionally, the bank said that it intends to convene a meeting of its board of directors by the end of this month to finalise its capital raise.

    Market regulator Sebi has put in place tighter disclosure norms, directing all listed banks to disclose any divergence in bad loan provisioning within 24 hours of receiving RBI's risk assessment report, rather than waiting to publish the details in their annual financial statements.

    Banks, including Indian Bank, Union Bank of India, Bank of India, Indian Overseas Bank, Central Bank of India and Lakshmi Vilas Bank, have already reported their NPA divergences for last fiscal.

    The disclosures need to be made in case the banks' additional provisioning for non-performing assets (NPAs) assessed by the RBI exceeds 10 per cent of the reported profit before provisions and contingencies, and if the additional gross NPAs identified by the RBI exceed 15 per cent of the published incremental gross NPAs.
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    5 Comments on this Story

    Niveza Equity Research309 days ago
    The Yes Bank stock is again in focus in line with the yesterday’s announcement that Rana Kapoor, Morgan Credits and YES Capital sell remaining 0.8% stake in YES Bank. The move has made the stock riskier from the long-term price corrections and sustainability point of view. The crisis hit entity’s fundamentals are also getting deteriorated day by day.
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    Balajee310 days ago
    Good original promoter exited bank , going forward things can only look up after legacy issues resolved
    SAURABH KUMAR310 days ago
    How come the auditors be so lax in their work that there is this high level of divergence in reporting NPAs...Why should they not be held accountable and brought to book if needed...
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