Yes Bank shares remain positive despite NPA divergence disclosure

The shares of Yes Bank traded in red after the lender published the disclosure regarding divergence in the asset classification and provisioning as per RBI assessment after market hours on Tuesday.

The Yes Bank stock has been one of the major wealth destroyer over the last one year period. The decline in the stock price was triggered when RBI questioned the lenders NPA disclosure and provisioning. In continuation to the assessment reports, the bank has submitted its disclosure on stock exchanges. According to the exchange filing, the private corporate lender has divergence in gross NPA of Rs. 3,277 crores. At the end of FY19, bank reported the gross NPA of Rs. 7,882.56 crores against RBI assessment of Rs. 11,159.58 crores at the same time. On the net NPA front, the RBI assessed the net NPA at Rs. 6,783.95 crores, which was a whooping Rs. 2,299 crores more than what the bank had disclosed.

The Yes bank also stated that it classified Rs. 1,259 crores NPA of the total divergence of Rs. 3,277 crores as per RBI assessment during the second quarter of FY20. The incremental NPA remains at Rs. 2,018 crores. The bank will also need an additional provisioning of Rs. 632 crores.

At 10.51 am, the bank's shares were trading at Rs. 65.35, higher by nearly 2 per cent on BSE.