On a yearly basis, bank deposits fell by 53.75% from Rs 2,27,610 crore to Rs 1,05,363 crore. Of this, Current Account deposits fell by 67% from Rs 28,542 crore to Rs 9,499 crore whilst Savings Accounts deposits declined by 60% from Rs 46,711 crore to Rs 18,564 crore. Term Deposits also fell by 49% from Rs 1,52,357 crore to Rs 77,301 crore within the year. As of May 2020, the deposit position of the bank fell further to Rs 1,02,717 crore.
Quarterly, deposits fell by 36% from Rs 1,65,755 crore earlier in Q3FY20. In terms of CASA, Current Account deposits fell by Rs 13,941 crore, a dip of 59%, from Rs 23,440 crore to Rs 9,499 crore. Savings Account deposits fell by 38% from Rs 29,764 crore to Rs 18,564 crore within the quarter. Term Deposits within the quarter fell by 31% from Rs 1,52,357 to Rs 77,301 crore. Notably, Certificate Deposits within Q4 increased by a whopping 1229% as the lender announced that it had raised CDs worth Rs 7,200 crore within the quarter.
On the COVID-19 impact, the bank said that it had extended the RBI provided EMI moratorium relief to all borrowers classified as standard as on February 29, 2020, which had an outstanding amount of Rs 14,594 crore. Yes Bank said that on an indicative level, 15% to 20% of corporate customers had availed the moratorium with value terms of 40 to 45%. MSME clients also consisted of 15% to 20% customers, but with lower value terms of 35% to 40% whilst 20% to 25% of Retail customers had applied for the moratorium with value terms of 40% to 45%.On the Non-Performing Asset (NPA) front, within the fiscal, Gross NPA increased to 16.80%, or Rs 32,877 crore, from 3.22%, or Rs 7882 crores, in March 19’. Net NPA also increased from 1.86% to 5.03% within FY20 from Rs 4484 crores to Rs 8623 crores. The bank further added that 63% of its Corporate Debt Investments were Non Performing, which had however a provision of 74%.
Yes Bank said it had written off Rs 8,415 crore worth of AT1 bonds, on part of the bank’s un-viability that was deemed after the RBI led re-construction scheme was first put out. Noting this aspect, the Auditor said that whilst the draft re-construction scheme “envisaged that the Bank would be able to write back Additional Tier 1 (AT1) securities amounting to Rs. 8,695 crores to equity,” the final scheme did not contain any reference, and hence this was written off. AT1 bondholders have however since challenged the decision in the Bombay High Court.
Notably, the bank continued to breach liquidity requirements set by the RBI despite an infusion of Rs 10000 crore by the State Bank of India (SBI) and 7 other lenders; as well as a short-term lending facility extended by the RBI, to which the bank has also sought an extension of. As of 31 March, 2020 the bank’s CET-1 ratio was 6.3% against a regulatory requirement of 7.375% whilst Tier 1 capital ratio was 6.5% as against a regulatory requirement of 8.875%. Yes Bank however added that the RBI was yet to impose any fine for the breaches and that it was in constant communication with the regulator.
Yes Bank’s reconstruction effort, which was majorly led by the State Bank of India (SBI) which has since acquired 48.2% of the bank with a lock in period of 3 years and a minimum investment requirement of 26%. The bank’s board is also led by SBI veteran Prashant Kumar, who was in his earlier capacity the Chief Financial Officer and DMD of the public sector lender. The board constituents further include two nominee directors on behalf of SBI and two additional directors appointed by the RBI. The bank said that it had made an assessment of being able to continue as a going concern on the basis of “projected financial statements for the next 3 years , satisfied that the proposed capital infusion and the Bank’s strong customer base and branch network will enable the Bank to continue its business for the foreseeable future.”
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