The Reserve Bank of India has threatened action against Yes Bank for divulging information from the Risk Assessment Report and making selective disclosures.
"As the RAR report was marked "confidential", it was expected that no part of the report and information contained therein be divulged except for the information in the form and manner of disclosure prescribed by Regulations. Therefore, the Press Release breaches confidentiality and violates regulatory guidelines.
Moreover, NIL divergence is not an achievement to be published and is only compliance with the extant Income Recognition and Asset Classification norms. The RAR also identifies several other lapses and regulatory breaches in various areas of the Bank's functioning and the disclosure of just one part of the RAR is viewed by RBI as a deliberate attempt to mislead the public," the release has stated.
Shares of Yes Bank had surged as much as 30 per cent on Thursday, following a press release from the bank, stating that no divergence was found by the RBI in its report for 2017-18. The RBI sees this as violating confidential information as well as selectively.
The share price of Yes Bank, which has rallied in the past few days, may see a swift fall on Monday, when trading resumes.