Yes Bank soars 30% after RBI report

The Yes Bank stock rose sharply 30.73 per cent to close at Rs 221 apiece on Thursday, a day after the Reserve Bank of India (RBI) found no inconsistency, or "divergence", in the bank's disclosures on its non-performing assets (NPAs).

Intra-day, it recorded its highest 32 per cent jump on the BSE.

Yes Bank said on Wednesday it has received the RBI risk assessment report that found "nil divergences in the bank's asset classification and provisioning from the RBI norms".

The RBI assesses compliance by banks on several counts, like income recognition, asset classification and provisioning for bad loans.

Commenting on the development, Angel Broking Senior Equity Research Analyst Jaikishan Parmar said in a note: "The RBI has found 'nil divergence' in the asset classification and provisioning by Yes Bank for financial year 2018. Now there is a clarity for the investor on two major concerns (management and divergence)."

JM Financials said: "The regulator's communication that non-performing loan divergences have been addressed, also indicate a streamlining of processes at the bank and the regulator's comfort with the change."

--IANS

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