The YES Bank share price fell the most on Sensex, Nifty today after the Reserve Bank warned YES Bank of regulatory action for disclosure of nil divergence report in violation of the confidentiality clause. The YES Bank share price fell 8.09% to 201 level today compared to the previous close of 218.70 on the BSE. On Nifty too, the YES Bank share price fell over 8% to 201 compared to the previous close of 219 level.
34 of 49 brokerages rate the YES Bank stock "buy" or 'outperform', ten "hold" and three "underperform", and two "sell", according to analysts' recommendations tracked by Reuters.
The YES Bank share price was trading above its 50-day moving average of 191.84 but below its 200-day moving average of 237.85 levels, respectively.
YES Bank on Friday 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. 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.
Earlier last week, the RBI said it did not find any divergence in the asset classification and provisioning done by the lender during 2017-18.
"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. Post this review, RBI found a large divergence of Rs 4,176 crore in the reported gross NPAs in the book 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.
After RBI disclosed NIL divergence, the YES Bank share price jumped 31.37 per cent intra day to 222.60 on Thursday.
In the third quarter of current fiscal, YES Bank logged 22 per cent rise in net profit year-on-year to Rs 1,076.7 crore. The private lender had registered net profit of Rs 882.63 crore during the corresponding period last financial year.
The lender saw a 7 per cent quarter-on-quarter growth in net profits, compared to the Rs 1,002.73 crore the private sector bank made in the September quarter this fiscal, as per the filing. Its total income for the period under review came up to Rs 3,311.1 crore with a 32.1 per cent growth on yearly basis.
The total income of YES Bank during the October-December quarter of 2017-18 was at Rs 6,492.56 crore, amounting to a 24 per cent growth of yearly basis. Yes Bank registered a total income of Rs 5,229.96 crore last fiscal. This also amounts to a 7 per cent quarterly growth over the total income of Rs 6,048.78 crore the bank posted during the July-September quarter of 2017-18.
YES Bank's gross NPA was 1.72 per cent in the Q3FY18 as compared to 0.85 per cent in the third quarter of the last fiscal. Net NPAs stood at 0.93 per cent in the quarter ending December 2017 compared to 0.29 per cent in the similar period last year. Its net interest income stood at Rs 1,888.8 crore for third quarter of the fiscal, a growth of 26.8 per cent on yearly basis.
Edited by Aseem Thapliyal