Yes Bank Down 5% on NPA Divergence – Misreporting of Bad Loans

Yes Bank Shares Down 5% on NPA Divergence Issue with strong volumes

Yes Bank had reported gross bad loans of Rs748.98 crore at the end of March 2016 compared to Rs4,925 crore assessed by the RBI. Yes Bank shares fell by 5% intraday after the lender disclosed this information in its annual report for fiscal year 2017 released on Friday trading session. Stock also broken down below 6 week low with strong volumes.

Credit Suisse says

ICICI Bank reported 5.85% NPA in March 2016, RBI finds 7%
Axis Bank reported 1.78% NPA in March 2016, RBI finds 4.8%

Morgan Stanley on Yes Bank

FY2016 GNPA, As Per RBI Assessment Was Rs 4,930 bn Vs Rs 750 Cr Reported By Bank. Entire Divergence Has Been Accounted For FY17 Results As Per Bank.
Reported GNPA Also Comprises One Single Cement A/C Of Rs 900 Cr Or 88% Of GNPA.

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