Gill said that apart from some senior hirings, the bank also
plans to increase its headcount by 2600 in FY20.
YES Bank has
shifted to a calibrated growth model with modest growth targets and preemptive
provisioning against bad loans, the top management told analysts over a call
after announcing January-March quarter results under a new chief on April 26.
The bank has pegged credit
growth at 20-25 percent for the current financial year and intends to stabilise
it around those levels in coming years, which is a break from the usual
aggressive loan book expansion that the private lender targets every year.
For March-ended 2019, the
bank's loan book grew by 18.7 percent over last year and shrunk by 1 percent
over the previous quarter. It had registered a growth of 53.9 percent in
2017-18 and 34.7 percent in 2016-17.
The bank also made contingency provisioning of Rs 2,100 crore
on around Rs 10,000 crore worth of assets of below investment grade rating on
its loan book. It expects half of these loans to slip into the non-performing
assets (NPA) category in future. The bank has pegged credit cost at 125 basis
points for the current financial year, factoring in the decision to adopt
conservative accounting going forward.
Ravneet Gill, the new
MD & CEO, said that apart from some senior hirings, the bank also plans to
increase its headcount by 2600 in FY20. He said that the bank is currently
looking to fill a senior position who will drive the retail liabilities growth
for the bank.
The bank posted a
surprise loss of Rs 1,507 crore for the quarter ended March 31 owing to spike
in bad loans (mainly IL&FS Group and Jet Airways).
The bank's PCR tanked
to 43.1 percent in March-ended quarter, from 50 percent a year ago. It plans to
prop up the provisioning coverage ratio to 60 percent in 12-18 months time.
YES Bank also said
that it is examining a whistleblower complaint on former MD & CEO Rana
Kapoor relating to irregularities in operations, potential conflicts of
interests and incorrect NPA classification. The bank has engaged an external
firm to independently examine the matter and will consider the implications of
the findings in the current financial year.
In a separate announcement, the bank appointed Ravinder Kumar
Khanna and Shagun Kapur Gogia as additional directors on the board. Gogia is
the daughter of Madhu Kapur and late Ashok Kapur who co-promoted YES Bank along
with Rana Kapoor.
Source: https://www.
moneycontrol.com/news/business/companies/yes-bank-q4-ravneet-gill-adopts-calibrated-approach-3900131.html
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