YES Bank slumps after bad loans rise

YES Bank does not expect any further divergence between reported bad loan ratios and the central bank's assessment

Shares of YES Bank slumped 7.4 per cent after investors took fright at revised bad loan figures which were four times higher than those previously reported by the Mumbai-based lender.

Earlier this week, the Reserve Bank of India (RBI) had fined YES Bank, controlled by billionaire Rana Kapoor, for under-reporting its bad loans in audited results for the year to March 31. The bank also underestimated its soured loans in the preceding two fiscal years, according to previous filings.

“The level of divergence between asset-quality figures that the bank has been reporting for the last three years and what the regulator found