Yes Bank
Rana Kapoor, founder Yes Bank Ltd. | Photo: Anindito Mukherjee | Bloomberg
Text Size:

Mumbai: India’s central bank has unearthed more than $450 million in extra bad loans at Yes Bank Ltd., the lender that is contending with a shadow-banking crisis and concerns over soured debt and capital.

Gross non-performing assets assessed by the Reserve Bank of India were 32.77 billion rupees ($457 million) higher than Yes Bank had disclosed as of March 31, the Mumbai-based lender said Tuesday. The bank has already classified 12.59 billion rupees of the divergence as bad loans as on Sept. 30, it said.

An earlier dispute with the central bank over Yes Bank’s reporting of bad debts culminated in co-founder Rana Kapoor’s departure as chief executive officer at the start of this year. New CEO Ravneet Gill is trying to raise funds by December to revive growth and reassure investors that the worst is over for the bank, which has tumbled 65% this year.

Investors are likely to focus more on Yes Bank’s fund-raising plans than the latest asset-quality divergence, according to Bloomberg Intelligence analyst Diksha Gera. “Its impending capital raise continues to be the biggest catalyst for the bank’s outlook,” she wrote.


Also read: Yes Bank should stop talking and focus on raising money


 

Yes Bank said earlier this month that it has attracted $3 billion of proposals for a stake-sale offer. A board meeting will be called by the end of November to finalize raising of capital, the bank said Tuesday.

We are deeply grateful to our readers & viewers for their time, trust and subscriptions.

Quality journalism is expensive and needs readers to pay for it. Your support will define our work and ThePrint’s future.

SUBSCRIBE NOW

The RBI assessed that the bank’s non-performing assets stood at 111.6 billion rupees as of March 31, more than the 78.8 billion rupees Yes Bank had disclosed for the year, the lender reported.

The central bank also found a divergence of 9.78 billion rupees in provisions, the bank said. Yes Bank has made provisions of 3.46 billion rupees until Sept. 30 and has to set aside a further 6.32 billion rupees for 2018-19, it said.

Other lenders including Bank of India have disclosed divergence in bad loans and provisions recently.


Also read: Yes Bank’s loss exceeds estimates as it battles bad loans, suffers corporate tax-hit


 

Subscribe to our channels on YouTube & Telegram

News media is in a crisis & only you can fix it

You are reading this because you value good, intelligent and objective journalism. We thank you for your time and your trust.

You also know that the news media is facing an unprecedented crisis. It is likely that you are also hearing of the brutal layoffs and pay-cuts hitting the industry. There are many reasons why the media’s economics is broken. But a big one is that good people are not yet paying enough for good journalism.

We have a newsroom filled with talented young reporters. We also have the country’s most robust editing and fact-checking team, finest news photographers and video professionals. We are building India’s most ambitious and energetic news platform. And we aren’t even three yet.

At ThePrint, we invest in quality journalists. We pay them fairly and on time even in this difficult period. As you may have noticed, we do not flinch from spending whatever it takes to make sure our reporters reach where the story is. Our stellar coronavirus coverage is a good example. You can check some of it here.

This comes with a sizable cost. For us to continue bringing quality journalism, we need readers like you to pay for it. Because the advertising market is broken too.

If you think we deserve your support, do join us in this endeavour to strengthen fair, free, courageous, and questioning journalism, please click on the link below. Your support will define our journalism, and ThePrint’s future. It will take just a few seconds of your time.

Support Our Journalism

Share Your Views

LEAVE A REPLY

Please enter your comment!
Please enter your name here