Yes Bank Sept quarter results miss the mark as NPAS surge
MUMBAI: Yes Bank Ltd missed second-quarter profit estimates by a wide berth on Thursday as provisions for bad loans and mark-to-market losses more than doubled, exacerbating woes at the bank in search of a new chief executive officer (CEO).
Net profit came in at ₹965 crore in the quarter ended September 30, compared with ₹1,003 crore a year earlier and short of analysts’ average estimate of ₹1,282 crore, according to I/B/E/S data from Refinitiv.
Provisions, or the amount set aside to cover a future liability, surged 110% to ₹940 crore.
The results come as Yes Bank looks for a new chief executive by the February 1 deadline imposed by the Reserve Bank of India (RBI), which last month denied CEO Rana Kapoor an extension of his term with the firm he founded.
The central bank did not give a reason for the decision, which sent Yes Bank shares plummeting.
Market participants said the move represented the central bank’s new hard-line approach in reducing the bad debt plaguing India’s banking sector.
Yes Bank’s gross bad loans as a percentage of its total loans stood at 1.60% by the end of September, compared with 1.31% a quarter earlier and 1.82% a year earlier.
Yes Bank shares closed 2.8% lower ahead of the results.