Yes Bank down 9% as Bombay HC rejects bond write down; Reported 80% drop in Q3 net profit

At 11:18 am the stocks of Yes Bank were at Rs 18.05 per share down by 8.61 per cent. The bank's stocks in the last year have grown by 35 per cent.

FPJ Web DeskUpdated: Monday, January 23, 2023, 11:25 AM IST
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Yes Bank down 9% as Bombay HC rejects bond write down; Reported 80% drop in Q3 net profit | File Photo

On Monday, private sector lender Yes Bank opened 10 per cent lower as the company's net profit for the quarter ending in December went down by 80 per cent on the back of provisions made for loans that were long overdue. Additionally, the Bombay High Court on Friday rejected the decision taken by the bank's administrator to write off Additional Tier 1 _AT-1) bonds worth Rs 8,415 crore.

At 11:18 am the stocks of Yes Bank were at Rs 18.05 per share down by 8.61 per cent. The bank's stocks in the last year have grown by 35 per cent.

Bombay HC's decision

Yes Bank had written off AT-1 bonds worth Rs 8,415 crore as part of the bailout on March 14, 2022, as SBI and other banks infused Rs 10,000 crore to rescue the bank. But this completely washed away the investment of bond holders who were expecting to be compensated.

The Bombay High Court division bench of Acting Chief Justice S V Gangapurwala and Justice S M Modak on Friday gave relief to the bond holders as they rejected the write down and stayed the order for six weeks. The court also said that the administrator did not have the authority to make such a decision.

Earnings

The net profit for the quarter came in at Rs 51.52 crore as against Rs 266 crore for the same period in the previous year. Non-tax provisions went up by 125 per cent at Rs 845 crore, a jump of 45 per cent from the last quarter. The total income of the company was up at Rs 7,015.18 crore, while the company's total expenditure was at Rs 6,101.55 crore.

The company's net interest income increased to Rs 1,970.6 crore, up by 11.7 per cent from Rs 1,764 crore in the previous year.

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