NEW DELHI: Crisis-hit Yes Bank has posted a net loss of Rs 16,418.02 crore in FY20, on account of shrinking loan book and high none performing assets as 63 per cent of its corporate investments have been declared non-performing investments. The bank had reported a profit of Rs 1,720.27 crore at the end of financial year 2018-19.
For the March quarter of FY20, the bank gained from income from write-down of additional tier 1 (AT1) bonds worth Rs 6,296.94 crore, after deducting taxes. This write down helped the bank post net profit of Rs 2,628.61 during the quarter ending March 31, against a net loss of Rs 1,506.64 crore in the same period last fiscal.
Yes Bank's Net Interest Income, the difference between interest earned and interest expended, declined to Rs 6,805 crore during FY20, as compared to Rs 9,809 crore reported during the previous financial year.
Interest earned by the bank during FY20 stood at Rs 26,066.61 crore, as compared to 29,624.75 crore in FY19. YES Bank's operating profit declined to Rs 3,518 crore in FY20, from Rs 8,135 crore posted at the end of FY19. This was the first result after the RBI ordered restructuring of the bank.
The bank attributed loss to worsening asset quality during FY20 as 63 per cent of its corporate investments have been declared non-performing investments. Gross NPAs rose to Rs 32,877.59 crore, or 16.8 per cent of gross advances, during the fiscal under review, as compared to Rs 7,882.56 crore, in the previous financial year.
Net NPAs grew Rs 8,623.78 crore, 5.03 per cent of net advances, crore during the fiscal 2019-20, from Rs 4,484.85 crore, 1.86 per cent of net advances reported during fiscal 2018-19.
YES Bank's provisions and contingencies skyrocketed to Rs 32,758.43 crore during FY20, in comparison to Rs 5,777.56 crore seen during the previous fiscal. Meanwhile Enforcement Directorate had filed it's charge sheet against it's former promoter Rana Kapoor in the Mumbai Court.
The charges levelled against Rana Kapoor included kickbacks of more than Rs 5,500 crore, anomalies in distributing bank loans to corporate entities by misusing his official position, creating shell companies for laundering money, defaults, and creating tainted assets.
The over 10,000 pages chargesheet, named his wife, Bindu; three daughters Rakhee, Roshini, and Radha and three firms, Morgan Credits, RAB Enterprises (India), and Doit Urban Ventures, allegedly controlled by the family.