Yes Bank deposits slump as customers withdraw

Bloomberg

Deposits at Yes Bank Ltd. continued to decline this year as worried customers withdrew money from the distressed lender, which was seized earlier this month in the biggest bank rescue in the country’s history.
Deposits totalled 1.37 trillion rupees as of March 5 — when Indian authorities took control — down 17% from the start of the year, Yes Bank said in a statement. That followed a 26% year-on-year slide in the three months through
December.
A lack of liquidity was cited as a key reason for the bailout. State Bank of India, ICICI Bank Ltd. and HDFC Ltd. are among the companies to have bought stakes in Yes Bank since it was seized.
“The bank took the opportunity of capital infusion to clean up the balance sheet as much as possible,” said Karthik Srinivasan, group head of financial sector ratings at ICRA Ratings.
Provisions climbed to 247.7 billion rupees in quarter ended December 31 from 13.36 billion rupees in previous three-month period and only 5.5 billion rupees a year earlier, Yes Bank said. The bank’s gross bad-loan ratio as a share of total loans was 18.9% in December quarter, up from 2.1% a year earlier.
The Mumbai-based bank swung to a net loss of 185.6 billion rupees in the last three months of 2019 from a profit of 10.02 billion rupees a year earlier, it said.
It reported a loss of 6 billion rupees in July-September. Yes Bank had delayed announcing the results for about a month, saying it was busy trying to raise capital.