UNDER a new head after the forced exit of its promoter-Chief Executive Rana Kapoor, Yes Bank on Friday reported a whopping Rs 1,506 crore of net losses for the March quarter as against a profit of Rs 1,179 crore in the year-ago period as provisions soared over nine-times.
Higher provisions for possible reverses, including a massive Rs 2,100-crore contingency reserve, was prime reason for massive losses, bank said. The heavy quarterly loss crimped full year profit at Rs 1,720 crore as against Rs 4,224 crore in FY18. Had it not been for a Rs 831-crore write-back, it would have reported higher losses for reporting quarter.
An almost ten-times spike in provisions to Rs 3,661 crore from Rs 399 crore in year-ago period also led to massive hit on bottomline. This includes a contingent provision of Rs 2,100 crore.
The leadership changes have often led to massive clean-ups at banks, and practice, normally at State-run banks, has been adopted by new MD and CEO, Ravneet Gill. Yes Bank also revealed receipt of whistleblower complaint
alleging irregularities in operations, potential conflicts of interest in relation to Kapoor, and incorrect classification of bad loans, which is being probed.