Private sector lender Yes Bank on Wednesday said the Reserve Bank of India (RBI) has not found any divergence in the bank's report for the financial year ended FY 2018.
Yes Bank in a filing to exchanges said that it has received the Risk Assessment Report from RBI for the last financial year and it observed no divergence in its asset classification and provisioning from the central bank's norms.
RBI assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes.
Divergence is the difference between a bank's reported asset quality and is assessed by RBI in its audit of the bank's books. As per RBI norms, if the difference between the bank's and RBI assesses nonperforming assets (NPA) is larger than 15 percent, it has to be disclosed to the public.
Yes Bank had reported two consecutive years of divergence in FY16 and FY17. For the year ended March 2016, Yes Bank reported a divergence of Rs 4,176 crore in its gross NPAs and Rs 3,318 crore in its net NPAs. For FY17, it reported a bigger divergence of Rs 6,355 crore in its gross NPA.
It is widely believed that the repeated large divergences for two consecutive years were one of the key reasons for RBI cutting short its former MD and CEO Rana Kapoor's tenure.
The bank has now named Deutsche Bank's India head Ravneet Gill as Kapoor's successor.
First Published: Feb 13, 2019 10:43 PM IST
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