Yes Bank reports 11.4 Percent Increase in deposits and 17.3 percent Gross NPA
Yes Bank has reported 11.4 percent quarter-to-quarter increase in deposits for the quarter ending June 2020. The troubled private lender is moving in safe direction and has avoided collapse that many banking industry experts had predicted earlier this year. Current account deposits jumped by 26.4 percent quarter on quarter. It can be considered as a strong indicator of confidence among bank customers.
Investors are now concerned about COVID-19 moratorium used by its loan and credit card customers. As per March end report, 33 percent of loan book was under moratorium. However, Yes Bank has indicated that 91 percent of its customer who have chosen moratorium on payments, were never delinquent for more than 30 days during the last 12 months.
“I think we are seeing all around that the economic activity has not been able to resume fully, but definitely there is some improvement happening," said Prashant Kumar, chief executive, Yes Bank.
Kumar added, “If you recollect, we have already given some colour on our moratorium book at the time of declaration of annual results in May.”
The situation will only be clear when 90-day moratorium period ends and we could see some information regarding the same in next quarterly results from banks.
Yes Bank stock has finally managed to stop the slide in valuation that started after FPO price was announced. On the day of listing of FPO shares, the private sector lender suffered 10% lower circuit for the complete trading session.
Yes Bank closed 1.26 percent down on Wednesday after trading positive for majority of trading session. In coming weeks, investors with high risk profile will be able to sell Yes Bank at much higher levels. Holding with patience is the only thing that can be suggested at the moment but taking fresh position isn’t advisable for investors.