Yes Bank regains some lost ground after plunging 15% on disappointing results

Last Updated: Fri, Oct 26, 2018 15:13 hrs
Yes Bank (Reuters image)

Mumbai: It was a big 'no' from investors for Yes Bank shares on the bourses this morning, with highly disappointing quarterly results from the bank being the cause for the decision. As sell orders piled up at the counter, the stock plunged by 15% to Rs 168.60 on BSE.

However, with bargain hunters stepping in at lower levels, the stock has a substantial portion of lost ground now, although it still remains sharply down in negative territory at Rs 184, down by about 7.4% from previous closing price.

The Yes Bank counter has clocked a volume of about 7.2 million shares so far in today's session, more than twice the average daily volume of 3.26 million shares. On the National Stock Exchange, the Yes Bank counter has clocked a volume of about 83.5 million shares so far in the session.

From a 52-week high of Rs 404 it had touched on 20 August 2018, the stock dropped down to Rs 165 by end September 2018.

On September 21, the stock suffered its steepest fall ever, plunging as much as 34%, before finishing the day with a loss of about 29%. The stock plummeted following several brokerages downgrading it after the Reserve Bank of India cut the bank CEO Rana Kapoor's three-year tenure to only four months.

Yes Bank announced after trading hours on Thursday that it posted a net profit of Rs 964.7 crore in the quarter ended September 2018. That was dwn 3.8% compared to the net profit it had posted in the year ago quarter.

At Rs 2366.4 crore, the bank's operating profit was up 24.1%, compared to the corresponding quarter last financial year.

After excluding impact of investment related MTM provisions and Profit on Sale of investments, Adjusted Net profit growth of the bank was 36.2% (y-o-y).

Net interest income was up 28.2% (y-o-y) in the quarter at Rs 2417.6 crore and the Net Interest Margin was stable at 3.3%. Meanwhile, non-interest income grew by 18% (y-o-y) to Rs 1473.5 crore with Core Non Interest Income growing
by 38.5% (y-o-y)

The bank made provisions for Rs 940 crore that included, Rs 409.2 crore towards NPA provisioning. In the corresponding quarter last year, the bank had made provisions for Rs 447 crore. In the quarter ended June 2018, the figure was Rs 626 crore.

The bank said that its gross outstanding exposure to IL&FS Group is Rs 2620.70 crore, which entirely was “standard” as of September 30. It added that it has nil exposure to the parent, NBFC or financial services of the group.

Yes Bank said that total assets grew 56.6% in the quarter to Rs 3.72 lakh crores and deposits were up 41% at Rs 2.23 lakh crores. Advances were up by a little over 61% (y-o-y) at Rs 2.4 lakh crores. The bank said its total capital adequacy was 17.0% with total capital funds at Rs 51,292.3 crores.

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