YES Bank under-reported FY16 bad loan, finds RBI audit

RBI had asked banks to conduct an asset quality review in Q3 and Q4 of FY16

Though the Reserve Bank of India (RBI) has mandated banks to disclose the full extent of asset quality stress in their books, some private banks, it seems, continue to under-report their bad loan data.

On Friday, YES Bank’s stock price fell six per cent to Rs 1,483.85 on the BSE after a disclosure in its 2016-17 annual report, which said the RBI audit had pegged its total gross non-performing assets (NPAs) at five per cent for financial year 2015-16 (FY16), against the bank’s own assessment of only 0.76 per cent for the same year. 

Analysts also say the under-reporting of