‘Collection efficiency of Yes Bank down’

The trends in the collection efficiency of Yes Bank are way below the pre-Covid levels and this could add to the existing stress book.

Macquarie Research said in a research note that while the retail book had 97% collection efficiency in the preCovid times, the number has fallen to 89% in September 2020 post the moratorium.

The similar number for SME book is 94% (pre-Covid) and 83% in September.

"Though the management didn't share the collection efficiency in the corporate book, it did acknowledge that collection efficiency in the corporate book is much lower than the pre-Covid levels and the overall book," Macquarie said.

"The trends in the collection efficiency are way below the pre-COVID levels and this in our view could add to the existing stress book", it said. The higher Covid-19 provisions have kept the profits subdued. Despite reporting operating profit of Rs 13.6 billion, PAT was just Rs 1.3 billion, largely on account of higher provisions during the quarter.