Yes Bank plunges 30% on surprise quarterly loss

Bloomberg

Shares in Yes Bank Ltd. slumped as much as 30 percent on Tuesday, the first day of trading after the lender headed by newly appointed Chief Executive Officer Ravn-eet Gill reported a surprise quarterly loss.
Yes Bank said it incurred a net loss of 15.07 billion rupees ($216 million) for the quarter that ended on March 31, after setting aside a record 36.6 billion rupees for loan losses and other provisioning. The loss surprised all analysts polled by Bloomberg, where the average estimate was for a profit of 10.2 billion rupees.
“New management under the leadership of Ravneet Gill has embarked into a full blown kitchen sinking exercise,” analysts led by Hatim Broachwala at IDBI Capital Ltd. wrote in a note. Several analysts downgraded the shares after news of the loss, citing the danger of more provisions in future and weaker loan growth.
The pace of year-on-year lending growth at Yes Bank fell to just under 19 percent in the latest quarter, from close to 54 percent a year earlier. Tuesday’s share price slump may also interfere with the bank’s plan to raise new capital to revive lending, according to
Ajay Bodke, the chief executive officer of the stockbroking
and research firm Prabhudas Lilladher Pvt. Ltd.