<p>The embattled lender YES Bank has reported a staggering loss of Rs 18,564 crore in October-December quarter as asset quality of the bank tanked and there has been a run on the bank.</p>.<p>This loss is the biggest ever quarterly loss by any bank in India, toppling Rs 13,417 crore loss by PNB in March quarter, 2018 by over Rs 6,100 crore. In that quarter PNB was hit by Nirav Modi-Mehul Choksi scam.</p>.<p>During the quarter the bank’s gross NPAs surged to an astounding Rs 40,709.2 crore, more than doubling in just three months from Rs 17,134 crore. The gross NPA percentage of the bank stood at an unprecedented 18.87%.</p>.<p><strong>READ: <a href="https://www.deccanherald.com/specials/sunday-spotlight/where-was-rbi-when-yes-bank-was-tanking-813855.html?_ga=2.32054846.1653821018.1584104499-1536226147.1579870440" target="_blank">Where was RBI when Yes Bank was tanking?</a></strong></p>.<p>The bank’s losses were on the back of provisioning worth Rs 24,765.73 crore for the NPAs in the bank. enhanced its PCR from 43.1 % on September 30, 2019, to 72.7% on December 31, 2019.</p>.<p>The bank’s capital adequacy ratio also took a hit, dropping to a paltry 4.2%, way below the Reserve Bank’s stipulated limits and hinting at quick bankruptcy if the RBI hasn’t assumed control of the Bank.</p>.<p><strong>ALSO READ: <a href="https://www.deccanherald.com/specials/sunday-spotlight/fragile-foundation-of-banking-trust-813857.html" target="_blank">Fragile foundation of banking trust</a></strong></p>.<p>Confirming the DH newsbreak in February, the bank has seen a huge run on the bank in the third quarter as bank’s depositor eroded by Rs 43,764 crore to Rs 1.65 lakh crore. The run on the bank has continued through into this quarter as the bank has seen its deposit base further erode by Rs 28,200 crore in the past two and a half months.</p>.<p>On placing the bank under moratorium last week, the Reserve Bank had said that its financial position declined - largely due to the inability to raise a capital to address the potential loan losses and the resultant downgrades, triggering an invocation of bond covenants by the investors, and the withdrawal of deposits.</p>
<p>The embattled lender YES Bank has reported a staggering loss of Rs 18,564 crore in October-December quarter as asset quality of the bank tanked and there has been a run on the bank.</p>.<p>This loss is the biggest ever quarterly loss by any bank in India, toppling Rs 13,417 crore loss by PNB in March quarter, 2018 by over Rs 6,100 crore. In that quarter PNB was hit by Nirav Modi-Mehul Choksi scam.</p>.<p>During the quarter the bank’s gross NPAs surged to an astounding Rs 40,709.2 crore, more than doubling in just three months from Rs 17,134 crore. The gross NPA percentage of the bank stood at an unprecedented 18.87%.</p>.<p><strong>READ: <a href="https://www.deccanherald.com/specials/sunday-spotlight/where-was-rbi-when-yes-bank-was-tanking-813855.html?_ga=2.32054846.1653821018.1584104499-1536226147.1579870440" target="_blank">Where was RBI when Yes Bank was tanking?</a></strong></p>.<p>The bank’s losses were on the back of provisioning worth Rs 24,765.73 crore for the NPAs in the bank. enhanced its PCR from 43.1 % on September 30, 2019, to 72.7% on December 31, 2019.</p>.<p>The bank’s capital adequacy ratio also took a hit, dropping to a paltry 4.2%, way below the Reserve Bank’s stipulated limits and hinting at quick bankruptcy if the RBI hasn’t assumed control of the Bank.</p>.<p><strong>ALSO READ: <a href="https://www.deccanherald.com/specials/sunday-spotlight/fragile-foundation-of-banking-trust-813857.html" target="_blank">Fragile foundation of banking trust</a></strong></p>.<p>Confirming the DH newsbreak in February, the bank has seen a huge run on the bank in the third quarter as bank’s depositor eroded by Rs 43,764 crore to Rs 1.65 lakh crore. The run on the bank has continued through into this quarter as the bank has seen its deposit base further erode by Rs 28,200 crore in the past two and a half months.</p>.<p>On placing the bank under moratorium last week, the Reserve Bank had said that its financial position declined - largely due to the inability to raise a capital to address the potential loan losses and the resultant downgrades, triggering an invocation of bond covenants by the investors, and the withdrawal of deposits.</p>
