Yes Bank saw its shares price plunging close to 13% to ₹85.80 on the BSE on Thursday after it reported a 91% decline in net profit for the first quarter of the current financial year, with asset quality worsening.
Asset quality of the lender deteriorated sharply with gross NPA ratio rising to 5.01% as at June end, compared to 1.31% a year ago and 3.22% as at March end.
“We believe only a certain part of exposure can be resolved quickly, while [a] large part of exposure slipping into NPAs remains a high chance, which we factored in over FY20 & FY21,” broking firm Prabhudas Lilladher said in a note to clients.
