Yes Bank expects NPAs to dip next quarter

Private sector lender Yes Bank, which would have seen its non-performing assets (NPA) ratio touch 20% in the third quarter is expecting it to decline from the next quarter onwards. Collection efficiency has rebounded to 96% and cheque bounce rate has come down to 9% from 19% during the peak of the pandemic.

Yes Bank reported a gross NPA ratio of 15.36% as on 31st December 2020. But an SC order on classifying loans has masked another Rs. 8322 crore NPAs form a mix of retail, corporate and small businesses. Of this, debt recast has been initiated for loans of Rs. 1264 crore under RBI’s covid-19 package announced on the 6^th of August, 2020.

Yes Bank continues to be cautious about growing its loan book due to covid-19. The bank saw 2% quarter-on-quarter growth in loan book to Rs.169721 crores in the third quarter. It added 225000 customers during the quarter. The bank’s focus is to get more retail deposits and is expecting 65-70% deposits growth, besides growing its branch network.

Source: Mint