Yes Bank expected to report loss of ₹4,219 crore for Q4

Updated: 06 May 2020

  • Photo: Ramesh Pathania/DailyLiveNews
  • Emkay Research believes that private banks will report a 7% decline in earnings in Q4, mainly dragged by Yes Bank

MUMBAI: Private lender Yes Bank Ltd is likely to post a net loss of 4,218.9 crore for the three months to March 2020, as against a loss of 1,507 crore in the same period last year, according to average estimates of four analysts polled by Bloomberg.

The bank will declare its Q4 FY20 results on Wednesday.

Analysts at Emkay Research expect Yes Bank may report a heavy loss due to business de-growth and higher provisions for non-performing assets (NPAs). Slippages could remain elevated as the bank may continue to recognise stress in its pool, Emkay said.

The brokerage believes that private banks will report a 7% decline in earnings in Q4, mainly dragged by Yes Bank, due to moderate net interest margins (NIMs) and higher bad loan provisions.

According to Emkay, Yes Bank’s net interest income (NII) is likely to be around 818 crore for the March quarter, a 67.4% decline on a year-on-year (YoY) basis. The private lender is also expected to post an operating loss of 188.5 crore in Q4, as against an operating profit of 1,323.4 crore in the same period last year.

Yes Bank had reported a record loss of 18,564 crore for the quarter ended 31 December owing to a sharp jump in bad loans and higher provisioning.

On 13 March, the Centre had approved a rescue plan for Yes Bank backed by State Bank of India (SBI)-led consortium of lenders. Under the plan, domestic investors including SBI, Housing Development Finance Corp Ltd (HDFC), ICICI Bank Ltd, Kotak Mahindra Bank Ltd, Bandhan Bank Ltd, Federal Bank Ltd and IDFC First Bank Ltd invested 10,000 crore into Yes Bank.

Meanwhile, as Mint reported on 22 April, three private lenders have already sold part of their stakes during 17-31 March. The highest number of shares were sold by Federal Bank, at 5.86 crore, followed by Kotak Mahindra Bank, at 4.72 crore, and IDFC First Bank, at 4.02 crore shares. While Federal Bank’s stake in Yes Bank declined 47 basis points (bps) to 1.92% as on 31 March, Kotak Mahindra Bank’s stake fell 37 bps to 3.61% and IDFC First Bank’s stake decreased 32 bps to 1.67% during 17-31 March.