Specialist in Indian Banking and Economic Research

Hemindra Hazari

Is a Securities & Exchange Board of India (SEBI) registered research analyst with over 25 years experience in the Indian capital markets with a specialization in banking and economy research and has managerial experience of establishing profitable equities business, leading and mentoring analysts.  He has worked with prominent foreign and domestic capital market firms such as UBS, Societe Generale, HSBC, ASK Raymond James  and Karvy Stock  Broking and is a regular guest on business media channels and is respected for his non-consensus view on stocks and the market.

YES Bank Q3 Results: Recurrent Earnings Power at One-Third Pre-Provision Income

YES Bank Solvency Simulation with Covid-19 Coverage Scenarios

Smartkarma Webinar | Light & Shadow: Disclosures and Governance in Indian Banks

YES Bank: Par Is Plenty- Move to Underweight

Yes Bank: The AT1 Bond That Got Away, To Live Another Day

Yes Bank, No Commitment: Downgrade to Outperform, from Buy

A commendable feature in <a href="https://www.smartkarma.com/entities/yes-bank-ltd" target="_blank" data-smartkarma-citation="entities:767:1" rel="noopener">Yes Bank (YES IN)</a>’s 3QFY2021 results declared on January 22, 2021 was the continued level of transparency made available to investors on its asset quality, despite reporting the inevitable huge increase in stress loans. Around 30% of private sector banks loans were under the Covid-19-induced moratorium, 3QFY2021 is the first quarter in which the impact of the lockdown on asset quality will be visible. Yes Bank not only provided a detailed breakdown of its non-performing and stressed assets and the provisions made against them, but also reported its exposures not classified as non-performing on account of the Supreme Court order. Most importantly, it also continued to disclose its 30-60 days and 61-90 days overdue loans (first disclosed in 3QFY2020 presentation), and the capital market can take its call on providing estimates on the additional provisioning required. No doubt, since its bailout, Yes Bank needs to reassure the market on its asset quality, transparency and the credibility of its accounts. These were all areas where this analyst had major <a href="https://hemindrahazari.com/2020/03/10/how-independent-research-found-a-fatal-flaw-with-yes-bank/" target="_blank" rel="noopener">reservations</a> when the bank was led by Rana Kapoor, who is currently a guest of the state.  Covid-19 and the stringent and ill-planned lockdown by the Indian government have ravaged the economy, and especially the informal sector, small and medium enterprises. Hence the asset quality of the banking sector is highly suspect. In such an environment, it is heartening to note that a bank which has just been provided a second life is confident to continue to disclose details on its asset quality, to reassure the market. In such times the banking industry would do well to follow the voluntary disclosures made by Yes Bank.

A commendable feature in Yes Bank (YES IN)’s 3QFY2021 results declared on January 22, 2021 was the continued level of transparency made available to investors on its asset quality, despite reporting the inevitable huge increase in stress loans. Around 30% of private sector banks loans were under the Covid-19-induced moratorium, 3QFY2021 is the first quarter in which the impact of the lockdown on asset quality will be visible. Yes Bank not only provided a detailed breakdown of its non-performing and stressed assets and the provisions made against them, but also reported its exposures not classified as non-performing on account of the Supreme Court order. Most importantly, it also continued to disclose its 30-60 days and 61-90 days overdue loans (first disclosed in 3QFY2020 presentation), and the capital market can take its call on providing estimates on the additional provisioning required. No doubt, since its bailout, Yes Bank needs to reassure the market on its asset quality, transparency and the credibility of its accounts. These were all areas where this analyst had major reservations when the bank was led by Rana Kapoor, who is currently a guest of the state.  Covid-19 and the stringent and ill-planned lockdown by the Indian government have ravaged the economy, and especially the informal sector, small and medium enterprises. Hence the asset quality of the banking sector is highly suspect. In such an environment, it is heartening to note that a bank which has just been provided a second life is confident to continue to disclose details on its asset quality, to reassure the market. In such times the banking industry would do well to follow the voluntary disclosures made by Yes Bank. 

Yes Bank Volunteers Data on Its Asset Quality; But Will Other Banks Be So Transparent?