Mumbai, Aug 18 (SocialNews.XYZ) Yes Bank Chairman Sunil Mehta has said that the bank is closely monitoring the stress on its credit portfolio due to legacy issues along with the current macro-economic conditions and the Covid-19 situation.
The Chairman's message to the shareholders in the bank's annual report said that the board continues to work closely with the management to identify and deal with impending issues "vigorously and appropriately".
"We are closely monitoring the stress on our credit portfolio on account of legacy issues, current macro-economic and Covid-19 situation," he said.
He noted that the bank is mindful of its fiduciary responsibilities to its customers, shareholders, employees and the regulator.
Mehta noted that this is also the time for the bank to increase its focus on the Environmental, Social and Governance (ESG) front, and continue to factor in new-age risks that are becoming increasingly mainstream.
He said that in order to ensure effective risk management practices which benefit all stakeholders, in recent months, the board has ensured efficient risk frameworks are put in place so that risks are identified, evaluated and addressed appropriately.
"Much of the work undertaken is not only to meet regulatory requirements, but to make the bank stronger, agile and efficient," the Chairman said.
He noted that post the restructuring with other major banks investing in the bank and the latest capital raise of Rs 15,000 crore through further public offering (FPO), Moody's Investors Service had upgraded the bank's rating to B3 with outlook stable.
Further, following this capital increase, the bank's Common Equity Tier-1 (CET) ratio has doubled to 13.4 per cent from 6.6 per cent at the end of June, 2020, bringing its capitalisation largely in line with the private sector peers, he said.
"The significantly improved solvency ratio strengthens the bank's resilience to potential asset quality risks resulting from the impact of the economic slowdown and COVID-19-related disruptions on India's economy," said the Yes Bank Chairman.
Source: IANS
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