Yes Bank posted a loss of nearly Rs 3,800 crore in Q4FY21 which is three times of what the street was expecting. Stress also continues for the bank as they will now restructure loans worth Rs 2,200 crore in Q1FY22.

According to Prashant Kumar, MD & CEO of the bank, the bank’s position in asset quality has improved in Q4FY21 versus Q3FY21. He also expects slippages to be less than recoveries going ahead.

“The net exposure as compared to December, it has come down by 20 percent. If we see SMA-I and SMA-II book, which was almost Rs 19,000 crore, it has come down to Rs 13,000 crore. Out of Rs 13,000 crore also, Rs 2,200 crore we are implementing COVID restructuring during the current quarter and another Rs 2,000 crore has already been upgraded. So, we are left with Rs 10,000 crore in SMA-I and SMA-II. We are not seeing slippage coming out of this and we would expect slippages to be less than the recoveries which we are going to make from our pool,” he said in an interview to CNBC-TV18.

Kumar said that he is expecting Rs 5,000 crore cash recovery in FY22. “Rs 2,000 crore cash recovery we have made in the fourth quarter against Rs 5,000 crore for the whole year. So, at least Rs 5,000 crore of cash recovery during the current financial year i.e. FY22 is definitely going to happen. But we would be aiming at higher recoveries,” he said.

He also said that they have made enough provisions and would not require any additional provisioning.

“On the capital side, we are at 11.2 on the CET. We have already made enough provisions, 79 percent on the loan side and 92 percent on the investment. So, on the existing book, there would not be any requirement for us to make any additional provisions,” he said.

Watch the video for more.

(Edited by : Abhishek Jha)