Tag: Yes Bank

Yes Bank Q2 profit jumps 74% to Rs 225 crore, BFSI News, ET BFSI

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New Delhi, Yes Bank on Friday reported a 74 per cent increase in standalone net profit to Rs 225 crore for the second quarter ended September. The private sector lender had earned a profit of Rs 129 crore in the corresponding quarter of previous fiscal.

Total income slipped to Rs 5,430.30 crore during the July-September period from Rs 5,842.81 crore in the same quarter last year, the bank said in regulatory filing.

Gross bad loans declined to 14.9 per cent of gross advances as on September 30. The same stood at 16.9 per cent in the year-ago period.

However, net Non-Performing Assets (NPAs) or bad loans rose to 5.55 per cent in the quarter under review from 4.71 per cent a year ago.

The bank has made prudent provisioning of Rs 336 crore on a single telecom exposure in the latest quarter. PTI DP RAM

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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 was ₹129.37 crore in the second quarter of last fiscal.

For the quarter ended September 30, 2021, YES Bank however, 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 was at 2.2 per cent.

Non interest income jumped up by 30.2 per cent on a year on year basis to ₹778 crore in the July to September 2021 quarter.

Provisions were 65 per cent lower at ₹377 crore in the second quarter of the fiscal as against ₹1,078 crore a year ago.

Asset quality saw some improvement but non performing assets remained high.

Gross NPAs was ₹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 was 5.55 per cent of net advances at the end of the second quarter as against 4.71 per cent a year ago.

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‘RBI should’ve acted on YES Bank 5 months earlier’, BFSI News, ET BFSI

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MUMBAI: Former State Bank of India chairman Rajnish Kumar has said in his book that the Reserve Bank of India should have sacked the Yes Bank board five months earlier in November 2019 as the bank was already losing deposits and defaulting on reserve requirements.

In his book, ‘The Custodian of Trust’, the former SBI chairman has provided some behind-the-scenes glimpses of what went into resolving something that appeared as a Lehman Brothers moment for India. It was during his tenure that the financial sector was hit by the triple failure of IL&FS, DHFL and Yes Bank.

Giving a hint of the workings of Yes Bank, Kumar reveals how the private lender stepped in to help GVK attain financial closure for its Navi Mumbai project. The Rana Kapoor-promoted bank had charged a high upfront fee even when SBI — which was several times bigger and facing pressure from various authorities — was reluctant given the group’s stressed situation. He has also questioned the delay in deciding on the reappointment of Kapoor, which left the RBI with no choice but to offer a three-month extension up to January for Kapoor.

Pointing out that Yes Bank’s plan to raise capital was not well thought out and the board had not applied its mind to a revival plan, Kumar said, “The action that the RBI took as late as March 2020 could probably have been taken as early as November 2019. But everyone is wiser in retrospect.”

Kumar has also dwelt extensively on the Jet Airways collapse. According to him, the SBI board was wary of backing Kumar on a resolution plan for the airline without a letter of comfort from the finance or aviation ministries. The airline’s fate was finally sealed after Etihad rejected the resolution plan.

According to Kumar, the negotiations with Etihad had turned ugly with both Jet promoter Naresh Goyal and SBI coming around to the view that Etihad was only interested in the Jet Privilege programme where it held stake and wanted to open this to other airlines. When this was mentioned to Etihad CEO Tony Douglas in a meeting by SBI MD Arijit Basu, the Etihad chief moved menacingly towards Basu and was stopped by Kumar’s intervention.

Kumar, whose tenure coincided with the great bad loan clean-up in Indian banks, also exposes some bitterness in banks taking the fall for a collective failure among stakeholders. “Attributing non-performing loans entirely to crony capitalism or zombie lending only highlights the lack of an in-depth analysis of the situation, in turn causing resentment among bankers,” he said.

The book, which is published by Penguin, is dedicated to the late Arun Jaitley who Kumar says guided him in crucial decisions. It was Jaitley who supported SBI’s decision to bite the bullet and provide for bad loans with a wry statement in Hindi: “Aur kya kar sakte hain, Rajnishji? (What else can be done?)”

Another interesting fact is that the reclusive former governor Urjit Patel, who was earlier on the SBI board, met Kumar only once during his tenure and closed the doors for all communication with banks.



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Dish TV rejects Yes Bank’s call for EGM, BFSI News, ET BFSI

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Dish TV India’s board on Wednesday turned down a requisition for an extraordinary general meeting (EGM) by Yes Bank on the grounds that laws do not allow it.

Yes Bank, which holds 25.6% in Dish TV, had sought appointment of new independent directors and removal of five directors including MD & director Jawahar Lal Goel. According to Dish TV, Yes Bank needs permission from Sebi and also the information & broadcasting ministry prior to placing its resolutions before the shareholders.

In a statement to the stock exchanges, Dish TV said that, owing to Yes Bank being a banking company and its shareholding “being a consequence of invocation of pledges, there are certain embargoes 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”.

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Five foreign investors shortlisted for majority stake in Yes Bank-backed ARC, BFSI News, ET BFSI

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Five foreign investors have made presentations to the Yes Bank management to form a new joint venture asset reconstruction company (ARC) which will house the lender’s non performing assets (NPAs), three people familiar with the development said.

The investors which have made presentations include Los Angeles based $149 billion Ares-SSG Capital, $15 billion alternative investment firm Varde Partners, US based $55 billion Ceberus Capital and distressed asset giants $156 billion Oaktree Capital and private equity company JC Flowers, three people familiar with the move said. Individual investors and Yes Bank could not be immediately reached.

Yes Bank will likely hold a minority share in the proposed ARC in line with Reserve Bank of India (RBI) directions. The selected investor is likely to hold a majority as much as 80% to 85% in the new venture, one of the persons said. EY is helping Yes Bank with the process.

“The model is more of a NARC type. Banks are not encouraged to hold a major share in any ARC. That’s why they are selling it,” said a second senior executive involved in the matter.

He was referring to the government backed National Asset Reconstruction Co (NARC) which has been formed to resolve legacy bad loans from the banking sector.

“Investors have not yet been officially informed about the short listed firms so the process will take some more before the partner is selected,” said a third person familiar with the matter.



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Anecdotal, though-provoking memoir on India’s banking system, BFSI News, ET BFSI

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New Delhi, This is a highly anticipated account of some of the critical periods in the history of Indias financial sector by one of the countrys most talented and established banking professionals in the country, Rajnish Kumar, former Chairman of State Bank of India (SBI), Indias largest commercial bank.

“The Custodian of Trust” (Penguin) is the story of Rajnish Kumar’s incredible journey as a banker. Debuting as a writer with his memoir, Kumar shares his stories – from being a probationary officer in SBI to becoming its chairman in 2017 – capturing the many changes he witnessed in India’s banking sector during his career. Recounting his experiences about the aftermath of demonetization; challenges in YES Bank; the crisis in Jet Airways and NPAs, this book is anecdotal, engaging and thought- provoking, and will attract a wide spectrum of readers.

“I am pretty excited to share my journey of 40 years with State Bank of India and offer glimpses of my personal life,” Rajnish Kumar said.

“SBI is considered a proxy to the Indian Economy. In that sense, the book is also an account of the tremendous progress made by the country as well as the banking and financial system in the last four decades. The removal of poverty has been the biggest challenge and banks have played a critical role in the fight against poverty. There are many untold and unknown stories in the book, which I am sure readers will find interesting and inspirational,” he added.

Even before its official launch, “The Custodian of Trust” has received generous praise and endorsements from the stalwarts of India Inc. and the banking industry. Ratan Tata, Chairman Emeritus, Tata Sons, remarked that “this book is not just about the banking system of our country, but a chronicle of contemporary economic history”. Uday Kotak, CEO, Kotak Mahindra Bank, said about the book: “It has the potential to be a Bollywood blockbuster.”

Premanka Goswami, Executive Editor at Penguin Random House India, said: “Rajnish Kumar assumed the responsibility to lead the country’s biggest commercial bank at a critical time when India’s financial sector was going through a turmoil. ‘The Custodian of Trust’ opens a window to these times. We, at Penguin House Random House India, are excited to publish Kumar’s memoir.”

Rajnish Kumar joined SBI as a probationary officer in 1980. He served the bank in various capacities across the country and overseas. Prior to his appointment as Chairman, he was Managing Director (National Banking Group) at the bank overseeing the Retail business and Digital Banking. He was Chairman of the Indian Banks Association and served on the boards of many other companies while serving SBI.

Currently, he is a director on the boards of HSBC Asia Pacific, L&T Infotech Ltd and Lighthouse Communities Foundation. He is also an exclusive advisor to Kotak Investment Advisors Ltd and senior advisor to Baring Private Equity Asia Pvt Ltd.

–IANS

vm/ksk/



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CBI charge sheet against ex-Yes Bank managing director Rana Kapoor, wife in Rs 1,700-cr loan scam, BFSI News, ET BFSI

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The CBI has filed a charge sheet against former Yes Bank managing director and CEO Rana Kapoor, his wife Bindu and promoter of Avantha Group Company Gautam Thapar in connection with an alleged loan scam of over Rs 1,700 crore, officials said on Friday.

In the charge sheet filed before a special CBI court in Mumbai, the central probe agency has alleged that Kapoor abused his official position and acquired a 1.2-acre uber-luxe bungalow at 40 Amrita Shergill Marg at a very less price than the actual market value.

In its FIR, the CBI had alleged that the property was mortgaged to Yes Bank against a loan of Rs 400 crore by Avantha Group.

“It was also alleged that the actual value of the property was approximately Rs 550 crore which was acquired by then MD and CEO of Yes Bank at a value of around Rs 378 crore and the proceeds of the sale was not used fully to liquidate the existing loan, later declared NPA by the bank,” CBI spokesperson R C Joshi said.

The property was purchased allegedly in the name of a company Bliss Abode Pvt Ltd where Kapoor’s wife Bindu was one of the directors and authorised signatory.

“It was further alleged that against this favour, then MD and CEO (Kapoor) of Yes Bank Ltd. extended additional loan of approximately Rs 1360 crore to other companies of said promoter/director (Thapar) during and after the acquisition of the said property,” Joshi said.

The CBI said these loans were never utilised for the purpose for which they were given and the borrowers were allowed to divert the funds for evergreening of the existing loans of the group companies. PTI ABS NSD NSD



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YES Bank advances edge up 3.6 per cent, deposits rise 30 per cent

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Private sector lender YES Bank posted a 3.6 per cent increase in its loans and advances as on September 30, 2021, to Rs 1.72 lakh crore from Rs 1.66 lakh crore a year ago.

Of this, gross retail disbursements expanded at a much faster pace and jumped up by 126.6 per cent to Rs 8,531 crore as on September 30, 2021, compared to Rs 3,764 crore a year ago.

“The above information is provisional and being released ahead of the official announcement of the financial results for the quarter ended September 30, 2021, which is subject to approval by the audit committee of the board, the board of directors and a limited review by the statutory auditors of the bank,” YES Bank said in a stock exchange filing on Monday.

 

The bank’s deposits also grew by 30.1 per cent to Rs 1.76 lakh crore at the end of the second quarter this fiscal, as against Rs 1.35 lakh crore a year ago. CASA deposits increased by 54.3 per cent on an annual basis to Rs 52,029 crore as on September 30, 2021.

The bank’s credit-to-deposit ratio was 97.9 per cent as on September 30, 2021, as against 122.9 per cent a year ago. The liquidity coverage ratio was 113.1 per cent at the end of the second quarter this fiscal, versus 107.3 per cent a year ago.

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HSBC, Yes Bank join rate cut war; foreign lender to offer mortgage from 6.45%, BFSI News, ET BFSI

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Mumbai, HSBC on Friday reduced rates on its home loan products, offering mortgages at 6.45 per cent – one of the lowest in the industry – for balance transfers. For fresh loans, the British lender’s local branches will offer lending at 6.70 per cent, which is at par with sector leaders like SBI and HDFC.

Yes Bank also cut its rate to the same level in a review and is aiming for doubling the book size during the limited period offer.

Last month, private sector lender Kotak Mahindra Bank cut its interest rates to offer home loans from 6.50 per cent onwards, forcing others to also review their rates. Credit growth is at low levels amid a flush of liquidity which is leading to the rate cuts.

HSBC India said its rate has been reduced by 0.10 per cent to 6.45 per cent for balance transfers, wherein existing borrowers being served by rivals are enticed to switch the remaining loan amounts to a newer lender by aggressive offerings.

Home loans are generally considered safer bets because of the underlying security, and waning of COVID infections has also prompted healthy pick-up in home buys.

In a statement, the bank said it has also waived the processing fee for these loans and added that the rate offering will be applicable only till December 31.

“We believe this reduction in the home loans rates will help reduce the interest burden of customers and make homeownership more affordable,” its head of wealth and personal banking, Raghujit Narula said.

The bank currently offers home loans of up to Rs 30 crore to all customer at 6.70 per cent.

Meanwhile, private sector lender Yes Bank also announce a cut in its offering to 6.70 per cent, as per a statement, which also said salaried women will get credit at 6.65 per cent.

“Given our focus on further building the retail book, home loan is segment we are looking at expanding and envisage growing the book size by 2X over the next three months,” its chief executive and managing director Prashant Kumar said. PTI AA ANU ANU



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HSBC, Yes Bank cut home loan rates, BFSI News, ET BFSI

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HSBC India has reduced its home loan interest rates by 10 basis points (100bps = 1 percentage point) from 6.55% to 6.45% for balance transfer home loans. Yes Bank too has announced a limited period a offer on, ‘Yes Premier Home Loans’ at 6.7%. It gives extra 0.05% benefit (interest rate at 6.65%) for prospective salaried women homebuyers.

HSBC’s special rate is available across all loan amounts, and the bank has also waived the processing fee for these loans. This special rate of 6.45% is part of a festive home loan offer which will be effective from 1st October 2021 to 31 December 2021.

“We believe this reduction in the home loans rates will help reduce the interest burden of customers and make homeownership more affordable,” said Raghujit Narula, Head Wealth and Personal Banking, HSBC India, said,

HSBC currently offers home loans to all customer at a competitive rate of 6.70% p.a. HSBC’s mortgage offering goes up to Rs 30 crores and includes other benefits such as Top-up Loans, Loans Against Property (LAP) and interest saving variant known as ‘Smart Home’. The special rate applies only to the basic home loan scheme.

Under Yes Bank’s offer, salaried home buyers can get flexible loan tenure of up to 35 years and zero prepayment charges with minimal documentation. The offer is applicable for home loans for property purchase as well as balance transfers from other lenders.



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