Yes Bank slides 8% as RBI threatens action for disclosing ‘NIL’ divergence report

Yes Bank Ltd dropped nearly 8% after the Reserve Bank of India (RBI) has warned the private sector lender of regulatory action for disclosure of nil divergence report.


Yes Bank dropped nearly 8 percent on NSE in morning trade on Monday, after the Reserve Bank of India (RBI) warned the private sector lender of regulatory action for disclosure of nil divergence report in violation of the confidentiality clause.

The stock though recovered a bit later. At 09:33 hrs, the stock was trading at Rs 210, 4 percent lower, on NSE.

Yes Bank in a press release earlier this month had said the RBI has not found any divergence in the asset classification and provisioning done by the lender during 2017-18.

In a regulatory filing on January 15, Yes Bank said it has received a letter from the RBI which noted that the Risk Assessment Report (RAR) was marked 'confidential' and it was expected that no part of the report is divulged except for the information in the form and manner of disclosure prescribed by regulations.

"Therefore, the press release breaches confidentiality and violates regulatory guidelines. Moreover, NIL divergence is not an achievement to be published and is only compliance with the extant Income Recognition and Asset Classification norms," the RBI said in its letter.

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