just say no
Where Yes deserves full marks is for confidence. Managing director Rana Kapoor is willing to let the provision coverage ratio at Yes drop to 43%, from 60%a quarter ago. Evidently, he’s expecting recoveries
But the lender has exposure to the same nine accounts in steel, power and other troubled industries that got rival Axis Bank Ltd. in trouble with the regulator. Axis, however, has reclassified all of its lingering exposure to those accounts as NPAs, and made allowances so as to keep the provision coverage ratio in the range of 60 to 65%. That does imply higher credit costs and lower current profitability at Axis than at Yes, but also a thicker safety cushion.
Where Yes deserves full marks is for confidence. Managing director Rana Kapoor is willing to let the provision coverage ratio at Yes drop to 43%, from 60%a quarter ago. Evidently, he’s expecting recoveries
But the lender has exposure to the same nine accounts in steel, power and other troubled industries that got rival Axis Bank Ltd. in trouble with the regulator. Axis, however, has reclassified all of its lingering exposure to those accounts as NPAs, and made allowances so as to keep the provision coverage ratio in the range of 60 to 65%. That does imply higher credit costs and lower current profitability at Axis than at Yes, but also a thicker safety cushion.
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