Yes Bank's burdens suddenly lighten as RBI clears it of misreporting charges

MUMBAI: The Reserve Bank of India (RBI) has cleared Yes Bank of any disparity in reporting bad loans, known as divergence in market parlance, the private-sector lender said late evening Wednesday.“The report observes NIL divergences in the bank’s asset classification and provisioning from the RBI norms,” the Mumbai-based lender said in a statement to the stock exchanges, citing the central bank’s risk assessment.The banking regulator assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes. YES Bank has received the Risk Assessment Report for FY18 as an outcome of the IRACP process.Divergence refers to the difference between the RBI's inspection report and the lender’s own report.Against the Rs 748.98-crore of gross NPAs reported by Yes Bank as on March 31, 2016, the RBI assessment showed the tally at Rs 4,925.68 crore, leading to a divergence of Rs 4,176.70 crore.This divergence further increased to Rs 6,335 crore in FY17 and was the main reason the former CEO Rana Kapoor's tenure was curtailed last year by the central bank.

from Economic Times http://bit.ly/2tlsYQc