The private sector lender Yes Bank announced that the Reserve Bank of India has found no divergence in its bad loans and provisioning from the central bank’s norms for the year ended March 2018 resulting in the bank’s stock prices surge as much as 30 per cent, posting its biggest intraday gains since July 2005.
The Reserve Bank of India’s risk assessment report is being released after Yes Bank reported higher bad loan ratios for two straight financial years. The bank’s top brass was also under scrutiny after the RBI pointed out discrepancies in how it reported its bad loans.
In Reserve Bank in its website published that the banks have to disclose divergences if the additional provisioning requirements assessed by the RBI exceed 15 per cent of the net profits after tax and/or additional gross NPAs identified by the RBI exceed 15 per cent of the incremental gross NPAs for the reference period, or both.
Read EquityPandit’s Technical Analysis of Nifty Bank