YES Bank trims loan book by 4.1% in past 3 months

The trimming was an attempt to enhance the bank's capital efficiency

The YES Bank stocks continued to tank, despite statements issued by bank's CEO Ravneet Gill. Photo/Reuters

Private sector lender YES Bank has trimmed its loan book by Rs 10,000 crore (4.1%) in the past three months in a bid to increase the capital efficiency. The bank announced the key financials ahead of the set result date, which many see as a bid to calm to investor sell-off at the bank.

Gross advances of the bank aggregated to Rs 2.32 lakh crores as on September 30,2019, compared to Rs 2.42 lakh crores as on June 30, 2019, the bank said in a regulatory filing. The bank also claims have a higher share of retail advances as compared with June 30, 2019. "The reduction in Advances was effected to enhance capital efficiency," the bank said.

The financial and operating metrics remain intrinsically sound and stable, with liquidity position well in excess of regulatory requirements, the bank headed by Ravneet Gill said in a statement.

The statement comes against the backdrop of the reports about the challenges to Yes Bank from exposure to non-banking finance firms that have funded the troubled real estate sector.

The YES Bank stocks continued to tank, despite statements issued by bank's CEO Ravneet Gill. In the current week, the bank's stocks tanked 40% to Rs 32 apiece.

The bank further said that over the past few days, there has been unfounded speculation about the bank’s deposits and liquidity. The lender had a comfortable liquidity and funding position, with a liquidity coverage ratio in excess of 125% as of September 30, which is well above the minimum regulatory requirement of 100%.

The bank also said that it has seen the CASA ratio increase to 30.8% in the September quarter from 30.2% in the June quarter.

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