Yes Bank shares slump 30% on first-ever quarterly loss

By Reuters

  • 30 Apr 2019
Credit: VCCircle

Shares of Yes Bank Ltd plunged 30 percent on Tuesday, after the Indian private sector lender posted its first ever quarterly loss last week due to a nine-fold jump in provisions for bad loans.

The Indian banking sector has been struggling with high levels of non-performing assets in recent times, their troubles exacerbated by weak performances in the infrastructure and airline sectors.

The company posted a loss of 15.07 billion rupees ($216.00 million) for the quarter ended March 31, while analysts were expecting a profit of 10.70 billion rupees. Provisions and contingencies surged to 36.62 billion rupees from 4 billion rupees a year ago.

Yes Bank's stock dived as much as 30 percent on very high volumes in early trade on Tuesday, it's biggest intraday percentage loss since Sept. 21, 2018.