Yes Bank, for Q4FY20 posted a net loss of Rs.3668 crore v/s loss of Rs.1507 crore posted in previous Q4. But one can look at a profit of Rs.2628 crore through an accounting adjustment – extraordinary income of Rs.6297 from write down of additional tier- 1 (AT1) bonds in its P&L account.
Deposits during the quarter declined sharply by 54% (YoY while advances fell 29%. CAR fell from 16.5% to 8.5%.
In terms of asset quality, Gross NPA were lower at 16.8% v/s 18.87% (QoQ) while Net NPA too eased a bit to 5.03% v/s 5.97%. This is thanks to the total provisions going down from Rs.24,776 crore to Rs.4872 crore.
The Bank stated that 63% of its investments in corporate debt securities were classified as non-performing investments.
The Bank was bailed out by RBI at the fore in March with SBI, HDFC Ltd, ICICI Bank, Kotak Bank, Bandhan Bank, Federal Bank and IDFC First Bank taking stake. As per the reconstruction plan, these stake holders cannot sell 75% of their stake for three years.
The market seems to be excited about the profit while ignoring the reason for it and that probably explains why the stock is currently the top gainer on the BSE. The stock, which had closed yesterday at Rs.26.35, opened lower at Rs.25.80 but soon jumped to an intraday high at Rs.31.60, which is very close to its 25% UC of Rs.32.90.