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YES Bank under-reported FY16 bad loan, finds RBI audit

RBI had asked banks to conduct an asset quality review in Q3 and Q4 of FY16

Yes Bank
A security guard stands outside a closed Yes Bank branch in New Delhi (Photo: Reuters)

Though the Reserve Bank of India (RBI) has mandated banks to disclose the full extent of asset quality stress in their books, some private banks, it seems, continue to under-report their bad loan data. On Friday, YES Bank’s stock price fell six per cent to Rs 1,483.85 on the BSE after a disclosure in its 2016-17 annual report, which said the RBI audit had pegged its total gross non-performing assets (NPAs) at five per cent for financial year 2015-16 (FY16), against the bank’s own assessment of only 0.76 per cent for the same year.  Analysts ...