The net amount recovered, which surpasses the materiality threshold defined by listing regulations, necessitates disclosure, and Yes Bank is adhering to these transparency requirements
Yes Bank, a prominent private sector bank with a noteworthy history, has undergone a transformative journey in recent years. Despite facing challenges, the bank is making significant strides towards a robust recovery. Over the past week, its stock has exhibited a commendable upswing, marking an impressive surge of over 11 per cent.
In the quarter concluding in September 2023, Yes Bank reported a remarkable 47.4 per cent Year-over-Year (YoY) increase in its net profit. This boost was notably propelled by a substantial 38.4 percent YoY rise in non-interest income, coupled with a prudent reduction of 14.1 per cent YoY in provision costs (non-tax). Notably, the bank's Retail Advances exceeded Rs 1 lakh crore, reflecting a substantial YoY increase of 27.2 per cent. Concurrently, SME advances surpassed Rs 30,000 crore, witnessing a robust 25 per cent YoY growth. Q2FY24 also marked new disbursements exceeding Rs 28,000 crore.
A significant milestone during this quarter was the launch of 'iris by YES BANK'—an all-encompassing mobile banking solution designed for seamless, on-the-go banking, emphasizing end-to-end life cycle management for customers. The bank achieved credit rating upgrades by CRISIL, India Ratings, and CARE, with Basel III Tier II Bonds and Infrastructure Bonds upgraded to A from A- / BBB+. Noteworthy digital innovations included the introduction of UPI payments through RuPay Credit Cards and enabling UPI interoperability on the RBI CBDC app. Furthermore, Yes Bank became the pioneer in the country to issue an 'ONDC Network Gift Card'.
In a positive development coinciding with the Diwali festival, Yes Bank announced a significant recovery. Following the sale of a non-performing asset (NPA) portfolio to J.C. Flowers Asset Reconstruction Private Limited (JC Flowers ARC) on December 17, 2022, the bank has now received a redemption amount of approximately Rs. 120 crores from a single trust within the security receipts portfolio associated with the earlier NPA sale to JC Flowers ARC.
The net amount recovered, which surpasses the materiality threshold defined by listing regulations, necessitates disclosure, and Yes Bank is adhering to these transparency requirements. In essence, Yes Bank has successfully recuperated Rs. 120 crores from an NPA account previously written off and sold to JC Flowers ARC. This recovery injects a welcome cash inflow and mitigates losses associated with the NPA account. The bank's commitment to regulatory compliance and transparent disclosure underscores its adherence to industry standards. Ultimately, the retrieval of Rs. 120 crores from the previously sold NPA stands as a commendable financial accomplishment for Yes Bank.
Disclaimer: The article is for informational purposes only and not investment advice.
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