(LiveMint)
The Reserve Bank of India (RBI) on Tuesday slapped a Rs6 crore penalty on Yes Bank Ltd for breaching its rules on classifying non-performing assets and failing to report a security incident involving its ATMs on time. Separately, RBI also imposed a Rs2 crore penalty on IDFC Bank Ltd for breaching regulations on giving loans.
In a notification, RBI said Yes Bank violated the Income Recognition Asset Classification (IRAC) norms on dealing with assessment of bad loans as of March-end 2016. Yes Bank was one of three private sector lenders which had reported a sharp divergence between their asset quality classification and provisioning for 2015-16, and what the RBI deemed necessary.
In its annual report for 2016-17, the bank said its bad loan classification of Rs748.9 crore at the end of March 2016 varied from that of RBI to the tune of Rs4,176 crore. RBI’s bad loan assessment was 558% more than what Yes Bank had reported.RBI also said Yes Bank failed to report a cyber-security attack on its ATM network within the prescribed timeframe.
