Yes Bank rescue happened in nick of time before pandemic struck, happy with progress: CEO Prashant Kumar

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Yes Bank was rescued in the nick time before the COVID-19 pandemic struck. CEO Prashant Kumar stated that he is very lucky to get saved at the right time. Even a 15-days delay would have brought him huge difficulties.

Yes Bank Rescued at the Right Time 

Prashant Kumar, CEO, acknowledged that the thread was very slender and the timing was very apt. This was the first time he spoke after RBI and the government moved in to bail out the lender. Prashant further stated that even 15 days delay would have caused a blunder. He would have been nowhere, not even able to speak. Within six days of the move to surpass the board and freeze the deposits, WHO declared COVID-19 as a pandemic. Infections went on rising and shortly, the whole country underwent a lockdown. SBI was kind enough to take the lead at that time. Yes Bank was supported by all the lenders in the system and the Stakeholders in the bank by infusing capital.

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Yes Bank rescue happened in nick of time before pandemic struck, happy with progress: CEO Prashant Kumar
Source: The Economic Times

Profits During the Pandemic Period

Prashant is happy as Yes Bank has listed out 55 percent growth in the deposits. Moreover, they witnessed a 42 percent jump in operating profit during the pandemic period. Also, Rs. 5000 crore cash was also recovered. However, the recovery timelines had to stretch due to Covid. What was supposed to be achieved in FY21 was shifted to the next fiscal year. Now, India is dealing with a second wave. The virus is creating more issues for all monetary institutions including, Yes Bank.

Losses Born by Yes Bank 

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Besides profit, the COVID-19 pandemic brought several issues as well. The overall quantum of stressed assets came down to Rs. 45,000 crores from Rs. 50,000 crores. Approximately, Rs. 28,000 crores include non-performing assets and written-off loans. 12,000 crore slippages of the Yes Bank for FY21 are from those accounts that have been impacted during the pandemic. Prashant has stated that the bank might lend more money for their renewal if the sponsor gets more equity. He has also made this very clear that he is not into killing a business by imposing securities.

Yes Bank rescue happened in nick of time before pandemic struck, happy with progress: CEO Prashant Kumar
Source: The Hans India

Yes Bank’s Future Plan of Action

Prashant said that 250 officers of the bank will witness an immediate dent in their take-homes. The senior management personnel will be more involved in the matter. However, the government will focus on infrastructure construction in the year 2022. This will bring a huge opportunity to Yes Bank to grow its loan book of FY22. Both front and back-end staff members of the bank have worked hard throughout the pandemic. Most of them have been infected as well. Out of 21,000 people, 10 percent have been infected. It plans to vaccinate its employees on a priority basis. The bank will shift its corporate headquarters to suburban Santacruz’s Reliance Centre by July 2021.

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Shiwangi Arya
Bonjour! I am Shiwangi Arya; an aspiring journalist, writer, orator, and above all a keen learner. My love for writing is beyond everything else. On the empty canvas of life, I wish to paint my imaginations. My dreams are sky high and my ambitions even higher.

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