Yes Bank surges 30 per cent

The shares of Yes Bank gained 30 per cent in the early morning session on Thursday. The bank informed that no diversion was found by the RBI in its asset classification and provisioning for 2017-2018.

The bank received the Risk Assessment Report for the fiscal year 2017-2018, in which the RBI reported no divergence whatsoever. Part of the RBI’s supervisory role includes a comprehensive assessment of compliance by banks pertaining to norms concerning income recognition, asset classification and provisioning.

Earlier, Yes Bank was rebuked by the RBI as the central bank discovered gross NPAs of Rs. 8,373.8 in 2016-2017, while the bank had only reported Rs. 2,018 crore. As such, Yes Bank reported divergences of Rs. 6,355 crore in 2016-2017. Furthermore, in 2015-2016, Yes Bank reported divergences of Rs. 4,176 crore.

Banking sector analysts believe that the bank's divergence issue was one of the compelling factors that led the RBI to shorten Rana Kapoor’s tenure as MD and CEO of Yes Bank.

On Thursday, the shares of Yes Bank opened at Rs. 185.95 and hit a high and low of Rs. 218.00 and Rs. 185.95, respectively. Also, the bank has 30 per cent upper circuit limit for the day. At 10:21 am, the stock was trading at Rs. 208.25, up 23.19 per cent. Meanwhile, the benchmark indices flanked lower during the morning trade, with the Sensex down nearly 80 points. The Nifty edged lower to 10,764, down 0.27 per cent.