Yes Bank said the Reserve Bank of India has found that it has under-reported bad loans by Rs 3,277 crore in the year ended 31 March 2019.
Of this, Rs 1,259 crore has already been classified as non-performing as on 30 September and Rs 2,018 crore is the amount of incremental bad loans, Yes Bank said. The divergence is the difference in bad loans reported by the bank and the assessment done by RBI.The private sector lender had reported a net profit of Rs 1,720.28 crore in 2018-19. The adjusted (notional) net profit after tax for the year ended 31 March 2019 after taking into account the divergence in provisioning was at Rs 1,084.03 crore.
The divergence in provisioning as on 31 March 2019 was at Rs 978 crore. Since Rs 346 crore has been provided for by 30 September 2019, the incremental provisions are to the tune of Rs 632 crore.
The bank's management stands irrevocably committed to ensuring the highest standards of accounting and governance transparency. This was also evidenced through the proactive measure of taking Rs 2,100 crore of 'Contingency Provision' on exposures which were fully 'Standard' as on 31 March, 2019, Yes Bank said.
Yes Bank added that in the current financial year, it has made material policy and personnel changes to ensure fullest regulatory compliance. The bank intends to convene a meeting of its board of directors by the end of this month to finalize its capital raise, it added.
According to recent guidelines by the Securities and Exchange Board of India (Sebi), banks are now required to disclose divergence in the asset classification and provisioning immediately upon receipt of RBI's final Risk Assessment Report (RAR).
Further, the bank said that it intends to convene a meeting of its board of directors by the end of this month to finalise its capital raise.
Yes Bank reported net loss of Rs 600.08 crore in Q2 September 2019 as compared to net profit of Rs 964.70 crore in Q2 September 2018. The total income of the bank fell 4.28% to Rs 8332.21 crore in Q2 September 2019 over Q2 September 2018.
Shares of Yes Bank were down 0.94% at Rs 63.55. Meanwhile, the S&P BSE Sensex was up 0.67% at 40,742.02 and hit an all time high.
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