Mumbai, May 12, 2017:
YES BANK would like to clarify that the disclosure on divergence in asset classification and provisions in NPAs in the Annual Audited Financial Statement is in conformity with the RBI circular issued on April 18, 2017, ‘Disclosure in the Notes to Accounts to the Financial Statements – Divergence in Asset Classification and Provisioning’. The reported divergence was for the prior period ended FY 15-16.
With ongoing remedial actions undertaken by the Bank during FY 16-17, there have been several reductions/ exits/partial sale to ARCs/improvements in account conduct which significantly reduced the overall gross NPA outstanding to Rs 1039.9 Cr as on March 31, 2017.
The outstanding GNPA as on March 31, 2017 includes one borrower with an exposure of INR 911.5 Crores (88%) which is expected to be recovered in near term. Specific provision held in this account was Rs 227.9 Crores.
After duly taking into account provision impact of the divergences, the Bank’s Credit Cost was at 53 bps for FY17 and 19 bps for Q4FY17.
Therefore, the Bank reiterates that there is No Carry Forward impact of the divergence observed by RBI in FY17-18.
About YES BANK
YES BANK, India’s fourth largest private sector bank is a high quality, customer centric and service driven Bank. Since inception in 2004, YES BANK has grown into a ‘Full Service Commercial Bank’ providing a complete range of products, services and technology driven digital offerings, catering to corporate, MSME & retail customers. YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES and its Mutual Fund business through YES Asset Management (India) Limited, both wholly owned subsidiaries of the Bank. Headquartered in Mumbai, it has a pan-India presence across all 29 states and 7 Union Territories in India including an IBU at GIFT City, and a Representative Office in Abu Dhabi.
For more information, please visit the Bank’s website at http://www.yesbank.in/
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