Tag: Yes Bank

Banks with 95% cards implement RBI order on recurring payments, BFSI News, ET BFSI

Banking & Finance

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A month after the RBI’s fresh rules on mandates for recurring card payments kicked in, banks accounting for over 95% of credit cards in the market are compliant with the new system. Over 20 lakh e-mandates have been registered by cardholders with a host of merchants.

According to payment industry sources, the banks whose credit cards are eligible for new standing payment mandate include SBI, Axis Bank, HDFC Bank, Yes Bank, American Express, Bank of India, Bank of Baroda, ICICI Bank, HSBC, RBL Bank, IndusInd Bank and Kotak Mahindra Bank. Several banks have enabled the mandate for both debit cards as well as credit cards.

Automatic recurring payments also require the merchant to be on-boarded to the new e-mandate framework. The compliant businesses include most of the OTT (over-the-top) streaming platforms, private life & general insurance companies, global IT giants like Google, Facebook, Microsoft and McAfee, as well as some edtech companies.

Interestingly, Indian cardholders who have registered with overseas service providers, having payment gateways abroad, are not subject to the new rules. This is because the RBI has no jurisdiction to impose second-factor authentication in those markets. It is up to the customer to disable international transactions on their cards.

What has facilitated the fast on-boarding of merchants is IT solutions like SI Hub developed by BillDesk and Mandate HQ developed by Razorpay. However, some domestic banks like Canara Bank & Punjab National Bank and Standard Chartered Bank were until last week in the process of making the necessary system changes.

According to the sources, card-based recurring transactions are 2.5% in terms of the number of transactions and 1.5% in terms of the value of the total card payments done in the country. On average, approximately 75% of domestic recurring transactions are of values of up to Rs 5,000. The corresponding figure for cross-border recurring transactions is approximately 85%.



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Yes Bank appoints Sharad Sharma non-executive director, BFSI News, ET BFSI

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New Delhi, Yes Bank on Monday said it has appointed Sharad Sharma as a non-executive director with effect from November 1, 2021. “Sharad Sharma has been co-opted as non-executive director of the board of the bank with effect from November 1, 2021, to broad base the board,” Yes Bank said in a release.

The decision comes vide a notification from the Finance Ministry under the ‘Yes Bank Ltd Reconstruction Scheme 2020‘.

Sharma will continue to hold his office until an “alternate board” is constituted by the bank in accordance with the procedure laid down in its Memorandum and Articles of Association, Yes Bank said in a regulatory filing.

He will be eligible to be appointed on the “alternate board” to be constituted under the Scheme with the approval from shareholders in due course, it said.

Sharma is a career banker with 40 years of experience in the banking industry.

He was Managing Director of State Bank of Mysore during the period from August, 2012 to April 2016, where he was seconded from State Bank of India (SBI). He joined Union Bank of India as a probationary officer in 1975 before joining SBI as PO in September, 1977.

Sharma held various assignments across all fields of a banking organisation, including exposure to international banking, when he was posted in SBI’s 100 per cent owned Canadian banking subsidiary.

His major interest has been primarily in the corporate and SME banking segment. PTI KPM MR MR



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Yes Bank appoints Sharad Sharma as Non-Executive Director

Banking & Finance

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Yes Bank has co-opted Sharad Sharma as Non-Executive Director on its board of directors.

The appointment is with effect from November 1 and will help broad base the board, it said in a statement on Monday.

Sharma is a career banker with forty years of banking experience. He was the Managing Director of State Bank of Mysore from August 2012 to April 2016, where he was seconded from State Bank of India.

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Private banks’ net profit up 26% as economic revival kicks in, BFSI News, ET BFSI

Banking & Finance

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The net profit of private banks rose 26 per cent year on year in the July-September 2021 quarter and 21.9 per cent sequentially over March-June 2021 (Q1), as the pandemic ebbed and economic recovery has taken hold.

The 12 private lenders posted a collective net profit of Rs 21,965 crore during the second quarter.

Provisions and contingencies of the lenders that have declared results fell both 22 per cent year on year and 30.2 per cent quarter on quarter to Rs 12,805 crore. The provisions include those for one time restructuring of loans announced by the RBI in May.

Net interest income was up 10.8 per cent y-o-y and 2.5 per cent sequentially. Other income rose 15.7 per cent to Rs 22,638 crore.

Gross non-performing assets grew 1.1% to Rs 1.73 lakh crore y-o-y, but fell 3.5 per cent sequentially from about Rs 1.8 lakh crore in the June quarter.

Net NPAs rose by 27.5 per cent y-o-y to Rs 42,895 crore, but fell sequentially by 7.3 per cent from Rs 46,280 crore in June 2021.

ICICI Bank

ICICI Bank posted a higher-than-expected 29.6% on-year rise in net profit to Rs 5510 crore in July-September, which was highest in the bank’s history. As the bank maintained 17% growth in advances, and further improved on net interest income and margins, asset quality ratios provided additional support to the bottomline by keeping provision costs low.

Axis Bank

Axis Bank reported an over 86% year-on-year rise in net profit to Rs 3130 crore for the September quarter, benefiting from an improvement in asset quality, which led to a fall in provisioning. The bank expects consumer and business confidence to continue to trend upward in Oct-Mar on the back of a rise in vaccination coverage and as the economy opens up, pent-up demand and spends materialise.

Federal Bank

Federal Bank posted a higher than expected net profit of Rs 460 crore in the September quarter, led by a fall in overall provisions as the lender reported improvements in asset quality. The bank’s net profit rose 49.6 per cent on year, and 25.3 per cent on quarter. This was supported by a faster-than-industry credit growth that fuelled a rise in core ratios such as net interest income and net interest margins.

YES Bank

Yes Bank’s net profit jumped 74 per cent year-on-year in the September quarter to Rs 230 crore on the back of a sharp fall in provisioning. Going ahead, a sharp reduction in overdue loans and sustained momentum in loan recoveries and upgrades augurs well for the overall asset quality of the bank.

RBL Bank

RBL Bank posted a 78.6 per cent on-year fall in net profit for the September quarter at Rs 30 crore due to higher provisions amid an increase in bad loans. For April-June, the private sector lender had reported a net loss of Rs 460 crore. Slippages, gross non-performing assets ratios, and provisions had peaked in the reporting quarter, and the lender was on track to see growth, the bank said.



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Yes Bank launches co-branded card with BankBazaar.com

Banking & Finance

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Yes Bank on Friday announced the launch of co-branded credit card FinBooster in partnership with BankBazaar.com.

“Built around a unique proposition of credit fitness tracker, it aims to empower customers to not only keep a track of their credit worthiness but also improve their score basis review of factors impacting their credit score through an intuitive CreditStrong app subscription (credit fitness report), complimentary for the Cardholder for the first year,” it said in a statement.

Adhil Shetty, CEO – BankBazaar.com, said, “The most recent edition of the BankBazaar Aspiration Index revealed that while close to 90 per cent people knew what credit score was, less than 70 per cent could accurately point out the impact of their financial habits on their credit scores. This was the gap we saw among 22-45-year-old salaried professionals.”

Rajanish Prabhu, Head – Credit Cards and Merchant Acquisition, Yes Bank said, “Finbooster in partnership with BankBazaar is another step in our endeavour to enhance customer experience while strengthening our Credit Cards portfolio. Designed to promote credit health, the card empowers customers to boost their credit worthiness while continuing to earn rewards points through everyday spends across brands and merchants.”

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Yes Bank | Dish TV: NCLT allows Dish TV to file its response in requisition notice of Yes Bank, BFSI News, ET BFSI

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The Mumbai-bench of the National Company Law Tribunal (NCLT) on Wednesday allowed Dish TV time till November 15 to file its response in a petition filed by Yes Bank, the company’s largest shareholder.

Yes Bank had sought NCLT’s direction to the company’s board to call for an extraordinary general meeting (EGM) of the shareholders to vote on removal of MD & CEO Jawahar Goel and four other directors.

In May last year, Yes Bank invoked promoters’ pledged shares in Dish TV to own 25.63% stake in the DTH company.

On September 3rd, the bank sent a requisition notice to the company’s board to convene a special meeting of the shareholders to reconstitute the board and sought the removal of Goel from the company and induction of seven new directors.

Goel is the brother of Subhash Chandra, founder promoter of the erstwhile Essel Group.

Chandra’s Zee Entertainment Enterprises is currently fighting a similar takeover battle in the NCLT and the Bombay high court against its largest shareholder Invesco.

Meanwhile, after Dish TV board declined the requisition for EGM, Yes Bank moved to the tribunal seeking a special shareholders meeting.

Appearing for Dish TV, senior counsel Navroz Seervai sought time to file the reply in the matter, stating that the company wanted to respond on “merit, jurisdiction and maintainability”.

Referring to the Bombay high court order in the ZEE Vs Invesco matter, he said, “Yesterday, in a similar matter the Bombay High Court has passed an order. We also want to put that on record. The order clarified that NCLT has no jurisdiction to entertain this kind of plea.”

The bench, headed by Suchitra Kanuparthi and Anuradha Bhatia allowed Dish TV time till November 15 to file its response in the matter and has posted the case for further hearing to November 23.

Senior counsels Darius Khambata and JP Sen, representing Yes Bank in the case, also sought time to file their rejoinder to the Dish TV reply.

The tribunal also allowed the lender to file a response to Dish TV’s reply before the next date of hearing.

The private lender has sought tribunal’s intervention to direct the company to either provide shareholder details – so it can call the meeting on its own – or instruct it to set a date for an EGM.

“Owing to YBL (Yes Bank) being a banking company and its shareholding in the Company (Dish TV) being a consequence of invocation of pledges, there are certain embargos under the provisions of the Banking Regulation Act, 1949 read with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, because of which the said resolutions cannot be placed before the shareholders,” said Dish TV in its exchange filing on October 13, at the time of rejecting the requisition request of the bank.

ET, in its September 24 report stated that the dispute between Goel and Yes Bank over corporate governance and fund-raising plans was escalating and was reaching the courts.

The bank wants to dissolve the entire board and removal of the promoter family, as it believes that the board is functioning in cahoots with the minority shareholders (that is the promoters), who should not have representation on the board.

Dish TV, which has been trying to raise funds since some time, had decided to go ahead with a Rs 1,000 crore rights issue to be able to invest for acquiring new customers, in set-top-boxes (STBs) and on marketing and promotions.



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Bank, card firms receive 2 million auto-debit mandates after RBI order, BFSI News, ET BFSI

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Banks and card networks have received nearly two million auto-debit mandates after the Reserve Bank of India (RBI) made it mandatory from October 1 to take prior consent of a customer before debiting their accounts.

Most of the recurring payments are linked to credit cards, while such a facility is not available in most places for debit cards.

In August, total credit card transactions stood at 19 million, and debit card transactions at 358.5 million. In value terms, credit cards were at Rs 77,732.94 crore and debit cards at Rs 64,351.52 crore.

The readiness

State Bank of India, Axis Bank, HDFC Bank, Yes Bank, American Express, Bank of India, Bank of Baroda, ICICI Bank, HSBC, RBL Bank, IndusInd Bank and Kotak Mahindra Bank have implemented the recurring payment framework for their customers.

Canara Bank, Punjab National Bank and Standard Chartered Bank are making necessary system changes to allow e-mandates based transactions.

Service providers such as Razorpay, Billdesk, PayU have come up with solutions to help card issuers, customers, and merchants to register their mandates on their customised platforms. BillDesk has set up SI Hub, PayU has created Zion while Razorpay has set up MandateHQ.

RBI’s auto-debit rule

Under the new auto-debit rules that kicked in on October 1, there are no automatic recurring payments for services like recharge, utility bill as the additional factor of authentication (AFA) has now become mandatory.

To ensure safety and security of card transactions, the central bank had, in December last year, directed all banks that processing of recurring transactions (domestic or cross-border) using cards or Prepaid Payment Instruments (PPIs) or Unified Payments Interface (UPI) under arrangements/practices not compliant with AFA would not be continued beyond March 31, 2021.

However, non-readiness of some of the players had forced the RBI to extend the deadline on recurring payment till September 30. The rule is applicable to all types of recurring payments like utility bills, phone recharge, DTH and OTT, among others.

As per the guidelines, banks will send a one-time password (OTP) to customers for payments above Rs 5,000.



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Yes Bank launches new category of accounts for entire family, BFSI News, ET BFSI

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Yes Bank has launched a new category of value-added family savings accounts that comes with healthcare benefits and dedicated relationship managers for multiple accounts across family members.

The Yes Family proposition includes features curated to make everything from shopping & dining together and availing loans more convenient and rewarding. In addition, these accounts have a waiver of fees on ATM withdrawals and digital transactions and reward points on banking transactions that can be transferred within the family, and cashback and lifestyle offer.

Yes Family accounts include three programmes — Yes Prosperity, Yes Premia and Yes First programmes for different customer segments. “Through this proposition, we envisage increasing our monthly retail customer acquisition by 15% till December 2021,” said Prashant Kumar, MD & CEO, Yes Bank. Discounted locker rentals, competitive interest rates on fixed deposits, recurring deposits, home loans and auto loans are among other benefits built into the proposition.

The Yes Prosperity Family account is available to customers who maintain a combined average monthly balance (AMB) of Rs 50,000, Yes Premia Family for customers with an AMB of Rs 2 lakh or a net relationship value (NRV) of Rs 10 lakh at a family level while Yes First Family is available to customers maintaining AMB of Rs 8 lakh or an NRV of Rs 30 lakh at a family level.



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NPA ratio falls: Yes Bank Q2 profit jumps 74% on lower provisions

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Prashant Kumar, MD & CEO, said, “This quarter, we have also seen a growth in the corporate and SME segments, post several quarters of de-growth.”

Yes Bank on Friday reported a 74% year-on-year increase in its net profit to Rs 225 crore for the September quarter, helped by a lower provisioning burden and higher non-interest income.

The bank’s net interest income fell 23% YoY to Rs 1,512 crore while other income rose 30% to Rs 778 crore. The net interest margin, a key measure of profitability, rose 10 basis points (bps) sequentially to 2.2%.

Provisions were down 65% at Rs 377 crore. Yes Bank made provisions worth Rs 336 crore against a single telecom exposure, understood to be Vodafone Idea, with the aggregate coverage working out to 10%. The provision coverage ratio fell to 78.9% from 79.3% at the end of June. The cumulative provisions stood at Rs 25,248 crore in September 2021, down from Rs 26,198 crore at the end of June.

The advances book rose 3.5% YoY to Rs 1.73 lakh crore as on September 30. Retail and micro, small and medium enterprises advances accounted for 54% of the loan book, against 53% a quarter ago. The management held on to its guidance for advances growth of over 15% in FY22, led by a 20% growth in the retail and SME book.

Prashant Kumar, MD & CEO, said, “This quarter, we have also seen a growth in the corporate and SME segments, post several quarters of de-growth.”

Deposits stood at Rs 1.77 lakh crore at the end of September, up 30% YoY. The current account savings account (CASA) ratio stood at 29.4% in Q2FY22, up from 24.8% a year ago.

The bank saw fresh slippages worth Rs 1,783 crore during Q2, with Rs 750 crore coming from the corporate book. The management said retail slippages were as a result of stress related to Covid, and collection efficiency trends are now showing an improvement.

Cash recoveries stood at Rs 987 crore and upgrades were to the tune of Rs 969 crore. The gross NPA ratio fell 63 bps sequentially to 14.97% and the net NPA ratio fell 23 bps to 5.55%. The bank has guided for cash recoveries and upgrades worth over Rs 5,000 crore in FY22.

The capital adequacy ratio as per Basel III stood at 17.6% as on September 30. The common equity tier-I (CET-I) ratio was at 11.5%.

Shares of Yes Bank’ ended lower 4.12% at Rs 13.73 on the BSE.

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Yes Bank posts 74% jump in Q2 net profit

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Private sector lender Yes Bank’s standalone net profit surged by 74.3 per cent to ₹225.5 crore in the second quarter of the fiscal led by a sharp jump in non-interest income and lower provisions.

The bank’s standalone net profit stood at ₹129.37 crore in the second quarter of last fiscal.

For the quarter-ended September 30, 2021, Yes Bank reported a 23.4 per cent drop in its net interest income to ₹1,512 crore as against ₹1,973 crore a year ago.

Net interest margin stood at 2.2 per cent in the second quarter of the fiscal as against 3.1 per cent in the corresponding period last fiscal. Non-interest income jumped by 30.2 per cent on a year-on-year basis to ₹778 crore during the quarter.

Provisions were 65 per cent lower at ₹377 crore in the second quarter as against ₹1,078 crore a year ago. Asset quality saw some improvement but non-performing assets remained high.

Gross NPAs stood at ₹28,740.59 crore or 14.97 per cent of gross advances as on September 30, 2021 versus 16.9 per cent a year ago. Net NPAs stood at 5.55 per cent of net advances at the end of the second quarter as against 4.71 per cent a year ago.

Prashant Kumar, Managing Director and CEO, Yes Bank said the resolution momentum of the bank continues with ₹987 crore of cash recoveries and ₹969 crore of upgrades in the second quarter of the fiscal.

“We are on track to meet the target of ₹5,000 crore through recoveries and upgrades this fiscal,” he told reporters.

Dish TV

On the issue of Dish TV, Kumar said the bank is doing everything to secure the asset and will explore legal recourse to maximise the recovery.

The bank would inform if and when it approaches the courts on the issue.

The bank is also moving toward setting up its asset reconstruction company (ARC) and expects to announce the name of the foreign partner in the next 60 days. “We have got a fantastic response from international investors. We hope to conclude the deal before the end of the financial year,” he said, adding that the lender will transfer all NPAs to the ARC.

“We will make our bank 0 per cent NPA as of March 31, 2022,” he said.

Restructuring

The bank said that ₹421.01 crore of the ₹4,621.74 crore restructured under the Reserve Bank of India’s Resolution Framework 1.0 had slipped into NPA during the half-year. Of this, it has written-off ₹8.06 crore.

Under the Resolution Framework 2.0, it has received requests for resolution of 17,778 personal loans, 2,634 business loans and 1,588 small businesses involving a total exposure of ₹857.64 crore. It has increased provisions by ₹125.86 crore on account of the resolution.

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