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|Yes Bank under-reported NPAs for 2015-16, says annual report disclosure|
| BT Online |
Friday, May 12, 2017 | 16:57 IST
Private sector lender Yes Bank Ltd's shares fell more than 5 per cent on Friday after the bank disclosed that it had reported lower non-performing assets (NPAs) than the assessment of the RBI for FY16.
The bank had reported gross NPAs worth Rs 748.9 crore as on March 31, 2016, while the Reserve Bank of India (RBI) had assessed gross bad loans worth Rs 4,925.6 crore.
"With ongoing remedial actions undertaken by the Bank during FY 16-17, there have been several reductions/exits/improvement in account conduct, and the impact of the divergence is Rs 1,040 crore," said the annual report.
The bank released the divergence figure in compliance with the RBI's directions on April 19, 2017 in which the central bank had asked lenders to disclose any significant divergence from the NPAs.
In a statement issued on Friday, Yes Bank said the disclosure on divergence in asset classification and provisions in NPAs in the Annual Audited Financial Statement is in conformity with the RBI circular issued on April 18, 2017, 'Disclosure in the Notes to Accounts to the Financial Statements - Divergence in Asset Classification and Provisioning'. The reported divergence was for the prior period ended FY 15-16.
"With ongoing remedial actions undertaken by the Bank during FY 16-17, there have been several reductions/ exits/partial sale to ARCs/improvements in account conduct which significantly reduced the overall gross NPA outstanding to Rs 1039.9 Cr as on March 31, 2017," Yes Bank said.
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