April 30, 2019 / 4:06 AM / 7 months ago

India's Yes Bank sinks after bad loans drive lender to surprise loss

BENGALURU, April 30 (Reuters) - Shares of Yes Bank Ltd plunged 30 percent on Tuesday, after the Indian private sector lender posted its first ever quarterly loss last week due to a nine-fold jump in provisions for bad loans.

The Indian banking sector has been struggling with high levels of non-performing assets in recent times, their troubles exacerbated by weak performances in the infrastructure and airline sectors.

The company posted a loss of 15.07 billion rupees ($216.00 million) for the quarter ended March 31, while analysts were expecting a profit of 10.70 billion rupees. Provisions and contingencies surged to 36.62 billion rupees from 4 billion rupees a year ago.

Yes Bank’s stock dived as much as 30 percent on very high volumes in early trade on Tuesday, it’s biggest intraday percentage loss since Sept. 21, 2018.

$1 = 69.7700 Indian rupees Reporting by Chris Thomas in Bengaluru; Editing by Rashmi Aich

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