Yes the bank falls below the FPO price, the profit falls by 60%

Yes the bank falls below the FPO price, the profit falls by 60%

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Mumbai: Shares of Yes Bank The follow-on public offer (FPO) price fell below Rs 12 on the day when the bank reported a 60% year-on-year decline in net profit to Rs 45 crore. On the positive front, the bank’s deposits grew by 11.4% to Rs 1,17,360 crore from the previous quarter.
Prashant Kumar, while announcing the results of the bank’s MD and CEO, said that the bank was adequately capitalized after the FPO. He said that the bank had appointed an advisor to advise the bank to move its bad debts to a separate entity and based on the recommendations the bank wanted permission from the regulator.
The bank set aside a provision of Rs 1,087 crore for the first quarter, with a provision of Rs 642 crore for COVID-19 related provision.
After improving the deposits, the bank has repaid the Rs 25,000 crore (50%) special liquidity facility that the bank took from the Reserve Bank of India as part of its resolution package. The bank marked a return of profit after four quarters of losses due to rising loans. According to Kumar, the bank has made provision for all bad loans and its provision coverage ratio at 75% was comparable to other banks.
The end-to-quarter ratio of net non-performing assets improved from 5% to 4.9% the previous quarter. The stock of gross non-performing assets also declined from Rs 32,878 crore to Rs 32,703 crore. However, the net increase in the ratio of net NPA resulted in a slight increase.
Year-on-year base deposits were down sharply by 48% from Rs 2,25,902 crore. The reason for this was that during the fourth quarter, due to increase in deposits, investors led by SBI faced a crisis and acquisition.


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