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Last Updated : Feb 19, 2019 07:08 PM IST | Source: Moneycontrol.com

Yes Bank says released RBI report to comply with SEBI norms

The bank also said that RBI mandates listed banks to disclose information pertaining to divergence only.

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Yes Bank on February 19 said that it had released information of nil divergence from a Reserve Bank of India (RBI) FY18 risk assessment report in order to be fully compliant with Securities and Exchanges Board of India (SEBI) regulations.

The bank said in a release that the information had to be given out to comply with SEBI's norms for information symmetry among market participants. The bank also said that RBI mandates listed banks to disclose information pertaining to divergence only.

Yes Bank on February 15 said it has received a letter from the RBI which noted that the Risk Assessment Report (RAR) was marked 'confidential' and it was expected that no part of the report be divulged except for the information in the form and manner of disclosure prescribed by regulations.

"Therefore, the press release breaches confidentiality and violates regulatory guidelines. Moreover, NIL divergence is not an achievement to be published and is only compliance with the extant Income Recognition and Asset Classification norms," the RBI said in its letter.

"The issuance of the Press Release has, therefore, been viewed seriously by the RBI and could entail further regulatory action/s," the letter added.

The RAR also identifies several other lapses and regulatory breaches in various areas of the bank's functioning and the disclosure of just one part of the RAR is viewed by RBI as a deliberate attempt to mislead the public, the central bank said.

The RBI conducted its first asset quality review (AQR) of banks in 2015 in order to find corporate loan accounts with severe financial weakness which were still classified as standard accounts on the books of the lenders.

(With inputs from PTI)

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First Published on Feb 19, 2019 07:06 pm
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