Yes Bank Stock Plunges 30% After Earnings Announcement

Yes Bank shares plunged as much as 30 per cent on Tuesday, after the private sector lender reported a net loss of Rs 1,506 crore for the quarter ended March 31 as its provisions for bad loans and other contingencies rose over 9 times. On the National Stock Exchange (NSE), the Yes Bank share price nosedived 29.76 per cent to an intraday low of Rs 166.60 apiece, compared with its previous close of Rs 237.20. In a regulatory filing, post-market hours on Friday, Yes Bank said higher provisions for possible reverses, including a contingency reserve of Rs. 2,100 crore, were the prime reason for the massive loss.

Yes Bank's net interest income came in at Rs 2,505 crore, up 16.29 per cent from Rs 2,154 crore during the same quarter last year.

Yes Bank shares were the top percentage laggard on benchmark indexes Sensex and Nifty.

Yes Bank reported a more than nine-fold increase in provisions to Rs 3,661 crore in the fourth quarter of financial year 2018-19, from Rs. 399 crore in the corresponding period a year ago. The bank had reported a net profit of Rs. 1,179 crore for the quarter ended March 31, 2018.

Yes Bank also said its gross non-performing assets ratio more than doubled to 3.22 per cent at the end of March, from 1.28 per cent in the year-ago period, and 2.10 per cent in the previous quarter.

Yes Bank's increase in bad loans is also because it is part of a group of lenders to debt-ridden Jet Airways, which was forced to ground all flights earlier this month after it ran out of funds.

On the Bombay Stock Exchange, Yes Bank shares fell to as much as Rs 172.35 apiece during the session, marking an intraday loss of 27.4 per cent compared to their previous close of Rs 237.40.

Yes Bank shares ended 29.23 per cent lower at Rs 168 apiece on the NSE, underperforming benchmark index Nifty.