YES Bank share crashed over 13% on Monday after the lender reported a Rs 3,790 crore loss in the March quarter against a profit of Rs 2,665 crore in the year-ago period. Losses rose on deterioration of asset quality faced due to the COVID-19 pandemic which forced the bank to set aside money for potential loan losses.
Share of YES Bank lost 13.40% to Rs 12.60 against previous close of Rs 14.55 on BSE. Market cap of the lender fell to Rs 34,826 crore. YES Bank share is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has fallen 50.34% in one year and lost 22.28% since the beginning of this year.
Later, the share managed to recover some lost ground. At 11:45 am, the large cap stock was trading at Rs 13.87, down 4.67% on BSE. In FY21, the lender narrowed its losses to Rs 3,488 crore against Rs 16,432 crore in FY20.
On a standalone basis, net loss came at Rs 3,787 crore in the March quarter as against a Rs 2,628 crore net profit in the year-ago period.
Managing director and chief executive Prashant Kumar on Friday laid out a slew of targets which the bank will be chasing in FY22, with special focus on recoveries. Asserting that the worst on the asset quality front was over, Kumar said the bank was again aiming to recover at least Rs 5,000 crore in FY22. He added that the overall cash recoveries will be more than the fresh slippages, providing money for which impacted the performance in January-March period.
The bank witnessed fresh slippages of over Rs 11,800 crore in the March quarter, following the Supreme Court order allowing banks to recognise asset quality stress after the moratoriums.
Kumar said the fresh slippages are not legacy troubled accounts, but newer assets in sectors like commercial realty and hospitality which bore the brunt of the COVID-19 pandemic, and exuded confidence that once the economy opens up, the assets will be upgraded.
The overall provisions moved up to Rs 5,239 crore during the March quarter, as against Rs 4,872 crore in the year-ago period and Rs 2,198 crore in the December quarter.
The operating profit for the quarter stood at Rs 184.88 crore as against Rs 106.41 crore in the three months to March 2020.