Mid-sized private sector lender Yes Bank has disclosed the RBI has found a divergence of over Rs 4,000 crore in the non-performing assets reported by it and the same assessed by the Reserve Bank for 2015-16.
As against the Rs 748.98 crore of gross NPAs reported by the city-headquartered bank as on March 31, 2016, the RBI assessment showed the same to be at Rs 4,925.68 crore, leading to a divergence of Rs 4,176.70 crore. The same was also seen in the case of net NPAs, with a divergence of Rs 3,318.67 crore, it said in the annual report.
This disclosure spooked investors and the scrip corrected by over 6 per cent to close at Rs 1,483.85 a piece on the BSE as against a marginal fall in the benchmark.
It can be recalled that divergences observed by the RBI was an important factor in the bank’s GNPAs nearly tripling to over Rs 2,000 crore as at end of Q4FY17.
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In a media statement later during the day, the bank which is among the first to come out with an annual report, said the disclosure is due to RBI’s April 18 circular. The statement added that there is no “carry forward impact” of the divergence observed by RBI in FY17-18.
It said the remedial actions undertaken by the bank during FY17, including several reductions/exits/partial sale to ARCs/improvements in account resulted in the gross NPA outstanding reducing to Rs 1,039.9 crore as on March 31, 2017.
The figure includes one borrower with an exposure of Rs 911.5 crores which is expected to “be recovered in near term”, it said, adding specific provision held in this account was Rs 227.9 crore.
After duly taking into account provision impact of the divergences, its credit cost was at 0.53 per cent for FY17, including 0.19 per cent for Q4FY17, it said.