YES Bank violated rules by revealing nil divergence report, says RBI

The central bank said it viewed the disclosure of only one part of the Risk Assessment Report (RAR) as a deliberate attempt to mislead the public

The Reserve Bank of India (RBI) has warned YES Bank that it might face regulatory action for allegedly violating a confidentiality clause by disclosing a nil divergence report. In a letter to the private lender, the regulator said the bank had violated regulatory guidelines in the press release where it had made this disclosure last week. 

“Nil divergence is not an achievement to be published and is only compliance with the extant Income Recognition and Asset Classification norms,” said the RBI’s letter.

The central bank said it viewed the disclosure of only one part of the Risk Assessment Report (RAR) as a