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Monday, December 09, 2019

Yes Bank shares jump over 30 per cent

Following the sharp jump in the share price, Yes Bank’s market cap rose by over Rs 12,000 crore to Rs 51,114 crore.

By: ENS Economic Bureau | New Delhi | Published: February 15, 2019 4:24:36 am
Yes Bank, Yes Bank shares, Yes Bank profit, Yes Bank revenue, Yes Bank India, indian express Following the sharp jump in the share price, Yes Bank’s market cap rose by over Rs 12,000 crore to Rs 51,114 crore.

A day after Yes Bank disclosed that the Reserve Bank has observed “nil divergences” in the bank’s asset classification and provisioning from the RBI norms, shares of the bank jumped to a high 32 per cent before closing at Rs 221 on Thursday, gaining 30.7 per cent.

Following the sharp jump in the share price, Yes Bank’s market cap rose by over Rs 12,000 crore to Rs 51,114 crore.

In a stock exchange filing on Wednesday, the bank said that 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,” said the bank.

The RBI conducted its first asset quality review (AQR) of banks, started in 2015, 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, the central bank found divergence of Rs 4,176 crore in the reported gross non-performing assets (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 PTI

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