RBI Finds No Divergence in Provisioning, Asset Classification: Yes Bank
The Reserve Bank of India assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning as part of its supervisory processes.
Image for representation. (Photo Reuters)
New Delhi: Yes Bank on Wednesday said the RBI has not found any divergence in the asset classification and provisioning done by the lender during 2017-18.
The Reserve Bank of India (RBI) assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes.
"As part of this process, Yes Bank has received the risk assessment Report for 2017-2018. The report observes NIL divergences in the bank's asset classification and provisioning from the RBI norms," the bank said.
The RBI conducted its first asset quality review (AQR) of banks, started in 2015, in order to find corporate loan accounts with severe financial weakness, but was still classified as standard accounts on the books of the lenders.
Post this review, RBI found a large divergence of Rs 4,176 crore in the reported gross NPAs in the books of accounts of Yes Bank for 2015-16.
Further, the RBI judged gross NPAs at Rs 8,373.8 crore for Yes Bank for 2016-17 against the declared gross NPAs at Rs 2,018 crore. Thus, there was a divergence of Rs 6,355 crore or three times the reported amount.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.
Recommended For You
- Xiaomi Redmi K20 Review: Is There Nothing Missing in This Brilliant Android Phone?
- After Babita and Vivek, Urvashi Dholakia and Her Ex Anuj Sachdeva to Get Evicted from Nach Baliye
- Dwayne The Rock Johnson Ties the Knot With Laura Hashian in Secret Hawaiian Wedding, See Pics
- Labuschagne Replaces Smith to Become First Like-for-like Substitution in Cricket
- Reebok CrossFit Nano 9.0 Review: Slickest Evolution of Versatile Fitness Shoes