Yes Bank Chairman Sunil Mehta assures speedy recovery, thanks RBI, SBI, HDFC Bank, ICICI Bank for lending support

Yes Bank Chairman Sunil Mehta has assured speedy recovery under the coordinated efforts of the new board and the bank management.

Mehta thanked Reserve Bank of India (RBI), State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank and other banks for their extraordinary and timely support. Photo: Reuters

Yes Bank Chairman Sunil Mehta has assured speedy recovery under the coordinated efforts of the new board and the bank management. Mehta thanked Reserve Bank of India (RBI), State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank and other banks for their extraordinary and timely support through the Yes Bank Reconstruction Scheme 2020, which was made effective March 13, 2020. He said that the Finance Ministry and other institutions supported Yes Bank allowing it to steer its way forward by learning from past challenges, expeditiously addressing key issues, and becoming stronger, even while continuing to focus on supporting customers and all stakeholders.

Addressing the AGM yesterday Chairman Sunil Mehta said, "Given the unprecedented situation, the Bank’s management team under the able leadership of the new MD & CEO, Prashant Kumar, immediately repositioned itself and dealt with all internal and market related challenges admirably, to restore customer and depositor confidence. In addition to the Special Liquidity Facility (SLF) of Rs 50,000 crore extended by RBI, the Bank has since received strong customer liquidity inflows. I am pleased to report that the Bank has fully repaid SLF of Rs 50,000 cores to the RBI on September 8, 2020 well before the due date. Meanwhile, YES BANK has made significant progress. Most importantly, the Bank successfully raised equity funding of Rs 15,000 crores through Follow‑on Public Offering (FPO) in July, within four months of the restructuring scheme, amidst very challenging market conditions."

Speaking on the recent revision in ratings by CRISIL and India Ratings Mehta said, "This is a testimony of the positive changes implemented in the Bank within a short time frame. The Moody’s rating improvement rationale as reported, was due to a successful FPO which bolstered the Bank’s solvency and improved financial strength. This will support depositor confidence. Following this capital increase, the Bank’s Pro-forma Common Equity Tier (CET) 1 ratio has doubled to 13.4 per cent from 6.6 per cent at the end of June, 2020, bringing its capitalization largely in line with the private sector peers. The significantly improved solvency ratio strengthens the Bank’s resilience to potential asset quality risks resulting from the impact of the economic slowdown and COVID-19 related disruptions on India’s economy."

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Embarking on a journey of transformation, Mehta said that the Yes Bank has made considerable progress towards achieving targets set by the new Board. It reflects the resilience, resolve and perseverance of the management team to bounce back despite enormous challenges and a complex economic environment.

Indicating the additional challenges posed by COVID-19 pandemic Mehta said, "We are closely monitoring the stress on our credit portfolio on account of legacy issues, current macro-economic and Covid -19 situation. Operating a revamped YES BANK, we are mindful of our fiduciary responsibilities to our customers, shareholders, employees and the regulator. We believe our coordinated efforts, together with stakeholder support, will help us honour them."

Yes Bank share price closed at Rs 13.95 per stock levels on 10th September 2020.

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