The Reserve Bank of India (RBI) has come down heavily on private sector lender Yes Bank for making the confidential Risk Assessment Report (RAR) public and what it sees as “a deliberate attempt to mislead the public.”

In a regulatory filing late on Friday night, private sector lender Yes Bank said the RAR also identifies several other lapses and regulatory breaches in various areas of the Bank's functioning. On February 13, Yes Bank had cited the report in a press release and said the RBI has found nil divergences in its asset classification and provisioning in2017-18.

“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 RAR also identifies several other lapses and regulatory breaches in various areas of the Bank's functioning and the disclosure of just one part of the RAR is viewed by RBI as a deliberate attempt to mislead the public,” Yes Bank in the regulatory filing said.

This is being seen as a one of its first kind of rebuke by the RBI to any private sector lender and could even lead to further regulatory action. “The issuance of the Press Release has, therefore, been viewed seriously by the RBI and could entail further regulatory action/ s,” Yes Bank further said.

Investors and analysts had cheered after Yes Bank had made public the RBI’s report on nil divergences and its share price had risen by over 30 per cent on Thursday. On Friday, Yes Bank shares closed at Rs 218.70 apiece on the BSE.

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