Yes Bank hits the roof after repaying Rs 35,000 cr to RBI

Yes Bank hit an upper circuit of 5% at Rs 15.78 after the private lender said it has repaid Rs 35,000 crore to the RBI out of the total special liquidity facility (SLF) of Rs 50,000 crore drawn for interim support.

In its FY20 annual report, Yes Bank's chairman Sunil Mehta said, "In addition to the Special Liquidity Facility (SLF) of Rs 50,000 crore extended by RBI, the bank has since then received strong customer liquidity inflows. I am pleased to report that the bank has, as of date repaid Rs 35,000 crore of SLF and the balance will be repaid within the timelines set by RBI."

Yes Bank successfully raised equity funding of Rs 15,000 crore through follow-on public offering (FPO) towards the end of July 2020. The FPO received bids for 523.48 crore shares from qualified institutional buyers (QIBs). The QIB segment was subscribed 1.90 times.

 

Yes Bank's net profit tumbled 60.1% to Rs 45 crore in Q1 FY21 from Rs 114 crore in Q1 FY20. However, the bank has returned to profitability after reporting loss in the past three quarters. It had reported a net loss of Rs 3,668 crore in Q4 FY20. Net Interest Income (NII) fell 16.3% to Rs 1,908 crore in Q1 June 2020 from Rs 2,281 crore in Q1 June 2019. Net Interest Margin (NIM) stood at 3% in Q1 FY21 as against 2.8% in Q1 FY20.

The bank's provisions and contingencies fell 39.1% to Rs 1,087 crore in Q1 FY21 over Q1FY20. It consists of a COVID-19 related provisioning of Rs 642 crore. Total deposits have fallen by 48% to Rs 117,360 crore as on 30 June 2020 from Rs 225,902 crore as on 30 June 2019. Total advances at the end of the June 2020 quarter fell 30% to Rs 164,510 crore from Rs 236,300 crore reported at the end of June 2019 quarter.

Yes Bank was under moratorium for 13 days in March 2020. It resumed full-fledged banking operations from 18 March 2020. This came after a consortium of eight public and private banks, led by State Bank of India, agreed to infuse capital into Yes Bank to rescue it from the brink of a collapse. These financial institutions had together pooled in Rs 10,000 crore as investment at Rs 10 per share in Yes Bank when it faced pressure from depositors.

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