New Delhi, Feb 13 (PTI) Yes Bank on Wednesday said the RBI has not found any divergence in the asset classification and provisioning done by the lender during 2017-18.

The Reserve Bank of India (RBI) assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes.

“As part of this process, Yes Bank has received the risk assessment Report for 2017-2018. The report observes NIL divergences in the bank’s asset classification and provisioning from the RBI norms,” the bank said.

The RBI conducted its first asset quality review (AQR) of banks, started in 2015, in order to find corporate loan accounts with severe financial weakness, but was still classified as standard accounts on the books of the lenders.

Post this review, RBI found a large divergence of Rs 4,176 crore in the reported gross NPAs in the books of accounts of Yes Bank for 2015-16. Further, the RBI judged gross NPAs at Rs 8,373.8 crore for Yes Bank for 2016-17 against the declared gross NPAs at Rs 2,018 crore. Thus, there was a divergence of Rs 6,355 crore or three times the reported amount.

This is published unedited from the PTI feed.