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Yes Bank shares rise by 31 pct, Rs 12,025 added to m-cap after RBI clears it of irregularities


Devdiscourse News Desk delhi India
Updated: 14-02-2019 17:47 IST
Yes Bank shares rise by 31 pct, Rs 12,025 added to m-cap after RBI clears it of irregularities

Shares of Yes Bank rallied 31 per cent at close of trade Thursday, adding Rs 12,025 crore to its market valuation, after the company said that the RBI had not found any divergence in the asset classification and provisioning done by the lender during 2017-18. The shares zoomed 30.73 per cent to close at Rs 221 on BSE. Intra-day, it advanced by 32.32 per cent to Rs 223.70.

On NSE, shares skyrocketed 31.36 per cent to close at Rs 222.60. In terms of traded volume, 194.98 lakh shares changed hands on BSE and over 26 crore shares were traded on NSE. The company stock was the biggest gainer on both the indices during the trade. Following the sharp jump in its shares, the company's market valuation jumped by Rs 12,025.11 crore to Rs 51,114.11 crore on BSE.

The Reserve Bank of India (RBI) assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes. "As part of this process, Yes Bank has received the Risk Assessment Report for FY2018. The report observes NIL divergences in the bank's asset classification and provisioning from the RBI norms," Yes Bank said in a filing to BSE Wednesday.

The RBI conducted its first asset quality review (AQR) of banks, started in 2015, in order to find corporate loan accounts with severe financial weakness, but was still classified as standard accounts on the books of the lenders. Post this review, RBI found a large divergence of Rs 4,176 crore in the reported gross NPAs in the books 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.

(With inputs from agencies.)

COUNTRY : India

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