Yes Bank shares plunge over 8 per cent post RBI censure
information in the form and manner of disclosure prescribed by regulations
Shares of Yes Bank tumbled over 8 per cent Monday after the Reserve Bank warned the lender of regulatory action for disclosure of nil divergence report in violation of norms.
The company's shares plummeted 8 per cent to Rs 201 on BSE.
At NSE, shares plunged 8.21 per cent to Rs 201.
Later, the stock recovered some of the lost ground and was trading at Rs 212.30, down 2.93 per cent during the afternoon trade on BSE.
Yes Bank in a press release earlier last week 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 Friday, 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 be 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.
Watch This Zee Business Video
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.
"The issuance of the Press Release has, therefore, been viewed seriously by the RBI and could entail further regulatory action/s," the letter added
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
Gold and Silver rate today (May 14, 2024): Precious metals trade in green; yellow metal above Rs 72,000 once again, white metal near Rs 85,350
Women loco pilots speak about their struggle; many men have to be informed even for 'washroom break' in a moving train
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
02:27 PM IST