YES Bank share price fell in the early trade today as the lender disclosed divergence in reporting of gross non-performing assets (NPAs) of Rs 3,277 crore for the financial year 2018-19. The divergence in net NPAs stood at Rs 2,299 crore for 2018-19. This was 51% of the net NPAs reported by the bank. Additionally, the bank also reported divergence in provisioning at Rs 978 crore as on March 2019.
The divergence in non-performing assets (NPAs) of a lender is the difference in bad loans reported by the bank and the assessment done by the RBI.
YES Bank shares traded 0.55% lower at the pre-open session on Wednesday and fell 3% at the opening bell. Later, the shares made a day's low at Rs 62, falling 3.35% against the previous close of Rs 64.15 on BSE. The midcap stock has lost 7.2% in last four days.
However, the stock price recovered lost ground to trade 1.79% higher at Rs 65.30 against previous close of Rs 64.15 on BSE.
YES Bank share has lost 66.11% during last one year and gained 64.1% since the beginning of this year. Market depth data on the BSE suggested 46% sellers offering the stock against 54% buyers bidding on the current price.
Volume-wise 14.4 lakh and 244.45 lakh shares are currently changing hands on BSE and NSE counters, respectively.
Due to higher non-performing assets assessed by the Reserve Bank, the lender reported a lower net profit of Rs 1,084.03 crore for 2018-19 compared to Rs 1,720.28 crore announced earlier.
"In the current financial year, the bank has made material policy and personnel changes to ensure fullest regulatory compliance," YES Bank said in a regulatory filing.
"The bank intends to convene a meeting of its board of directors by the end of this month to finalize its capital raise," it added.
According to recent guidelines by the market regulator Securities and Exchange Board of India (SEBI), all listed banks are now required to disclose any divergence in the asset classification and provisioning within 24 hours of upon receipt of RBI's Risk Assessment Report (RAR), rather than waiting to publish the details in their annual financial statements.
As per the RBI norms, banks are required to disclose any divergence of more than 15% to investors immediately post the receipt of RBI's report.