Yes Bank reports Rs 18,564 crore loss for December quarter, Due to this reason

Yes Bank's board was superseded by the government on March 5.

Yes Bank reports Rs 18,564 crore loss for December quarter, Due to this reason
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Yes Bank reports Rs 18,564 crore loss for December quarter, Due to this reason

Yes Bank reported on Saturday a staggering Rs 18,654-crore loss for the December quarter due to higher recognition of dud assets on the books and erosion of capital buffers to the brink. The gross non-performing assets shot-up to Rs 40,709 crore or 18.87 per cent of assets as of December 31, 2019, up from the preceding September quarter's Rs 17,134 crore or 7.39 per cent, which forced the bank to set aside Rs 24,765 crore as provisions for the expected reverses and eroded the bottom line.

The bank's board was superseded by the government on March 5, and the RBI had appointed former chief financial officer of SBI, Prashant Kumar, as the administrator. An inability to raise capital was cited as the primary reason for the actions, which also included it being put under a moratorium and a slew of restrictions, including capping of withdrawals at Rs 50,000 per account for a month.

Kumar is set to be its chief executive and managing director and the bank reported its results late on Saturday evening after what seems to be a marathon day of meetings. The bank's woes primarily stem from alleged corporate governance lapses under co-founder chief executive Rana Kapoor, who was arrested last weekend by the Enforcement Directorate and was booked under a fresh case by the CBI on Friday.

Kapoor's successor Ravneet Gill had chosen to report stress in the March 2019 quarter, leading for the maiden quarterly loss, and followed it up with two more quarters of weak results. For the December quarter, the bank informed the exchanges that the common equity tier-I ratio had fallen to 0.6 per cent as against a mandated requirement of 7.375 per cent, and added that it had breached the liquidity ratios as well.