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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 the BSE. At the 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 afternoon trade on the BSE.
The stock closed at Rs 213.15, down Rs 5.55 (-2.54%) on the BSE, while it was quoting at Rs 214, down Rs 5.00 (-2.28%) on the NSE.
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 on 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. 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.
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