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YES Bank to announce Q4 results today; loss expected to rise amid weak loan growth

YES Bank to announce Q4 results today; loss expected to rise amid weak loan growth

The bank's earnings are likely to be under stress owing to muted net interest margins (NIMs) and higher provisions for bad loans

In Q4FY19, the bank posted a net loss of Rs 1,506 crore In Q4FY19, the bank posted a net loss of Rs 1,506 crore

YES Bank is scheduled to announce standalone and consolidated financial results today for quarter and year ended March, 2020. Analysts expect the private sector lender to see a rise in loss amid weak loan growth and steep deposit withdrawal. According to a Bloomberg poll, Yes Bank may post a net loss of Rs 4,218 crore for the quarter ending March 2020 compared to a loss of Rs 1,507 crore in the same quarter last year.

The net loss is expected to increase to Rs 4,404 crore on a Y-o-Y basis in Q4FY20, Kotak Securities said in a report. YES Bank, which was recently bailed out by the SBI-led consortium of banks, may record a pre-tax loss at Rs 6,902 crore as against Rs 2,338 crore in the corresponding quarter of FY19, the report added. Both outstanding loans and deposits are expected to fall by nearly 40 per cent, it noted.

In Q4FY19, the bank posted a net loss of Rs 1,506 crore. In Q3FY20, YES Bank announced a loss of Rs 18,564 crore. The non-performing assets (NPAs) jumped substantially to Rs 40,709 crore during the period, while the net NPA stood at Rs 11,114 crore, or 6 per cent of net advances. Provisions were recorded at Rs 24,765 crore.

It would be the first quarterly result for the YES Bank after eight private financial institutions including SBI, ICICI Bank, HDFC, among others acquired stakes in it as per the RBI-monitored restructuring scheme.

Shares of YES Bank were trading at Rs 26.30, down 0.30 points, or 1.13 per cent on NSE at the time of reporting.

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