MUMBAI : Mumbai: Yes Bank will have no non-performing asset after it transfers its entire bad loan book to the asset reconstruction company (ARC) by the end of March 2022, according to managing director and chief executive officer Prashant Kumar.
Regarding this, is bad bank a good idea?
A bad bank would help banks encumbered with high NPAs to get rid of their toxic assets, thus leading to a jump in profitability. The one-time transfer of assets out of the bank’s balance-sheets will relieve banks of their stressed assets and allow them to focus on their core business operations viz. lending.
Considering this, what is bad debts with example?
Bad Debt Example
A retailer receives 30 days to pay Company ABC after receiving the laptops. Company ABC records the amount due as “accounts receivable” on the balance sheet and records the revenue. … After repeated attempts, the company ABC is unable to collect the payment and hence, it will be considered as a bad debt.
What is bad loan for a bank?
A bad loan is officially defined when interest payments stop coming for 90 days or more. It’s declared as a non-performing asset (NPA). The gross NPA ratio is as high as 20 per cent for some public sector banks (much unlike HDFC Bank). But there’s a difference between gross NPA and net NPA ratio.
What is difference between gross NPA and net NPA?
Gross NPA is the summation of the principal and the interest that is left unpaid after the repayment period while Net NPA is the amount obtained on deducting provisions from gross NPA. Gross NPA gives a grace period after which the loan is to be repaid while Net NPA does not give any grace period.
What is the net worth of Yes Bank?
RETURN ON ASSETS
| BalanceSheet – YES Bank Ltd. | ||
|---|---|---|
| Rs (in Crores) | ||
| Share Capital | 5010.98 | 463.01 |
| Reserves & Surplus | 28185.35 | 26441.19 |
| Net Worth | 33196.33 | 26904.20 |
What is the NPA of Yes Bank?
The gross NPA ratio fell 63 bps sequentially to 14.97% and the net NPA ratio fell 23 bps to 5.55%. The bank has guided for cash recoveries and upgrades worth over Rs 5,000 crore in FY22. The capital adequacy ratio as per Basel III stood at 17.6% as on September 30. The common equity tier-I (CET-I) ratio was at 11.5%.
Who will fund the bad bank?
Public Sector Banks (PSBs) and Public FIs will hold a maximum of 49% stake and the rest will be with private sector lenders.
Will Yes Bank be merged?
Yes Bank Says No Merger Plans With SBI, Repays Entire Rs 50,000 Crore To RBI.