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Regular-article-logo Sunday, 12 May 2024

Yes Bank defends loan book

Denies window dressing of accounts

Our Special Correspondent Mumbai Published 27.09.18, 07:25 PM
Rana Kapoor

Rana Kapoor File picture

Private lender Yes Bank on Thursday said it has not indulged in any window dressing of its corporate accounts to conceal non-performing assets (NPAs).

The bank, which reported gross non-performing assets (NPAs) of 1.31 per cent for the quarter ended June 30 and a net NPA of 0.59 per cent, said in a reply to queries raised by the National Stock Exchange (NSE) that its NPA numbers are “among the finest in the Indian banking industry”.

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The bourse had raised the queries after it received a complaint over alleged irregularities in the functioning of the bank. “The bank has not entered into any transactions with the intent to do any window dressing of corporate accounts to conceal NPA status,” Yes Bank said in the response.

The lender further pointed out that it has been making disclosure on divergence in the asset classification and provisioning by banks. The lender added that it is also subject to annual risk-based supervision exercise by the RBI which entails a comprehensive review of its functioning.

Yes Bank has been in the news after the RBI curtailed the tenure of its co-founder and CEO Rana Kapoor till January 2019. After a board meeting on Tuesday, the lender sought the central bank’s nod to extend the tenure of Kapoor till September 30 next year. The bank has also set up a committee to identify a successor.

Yes Bank had said that given the role of Kapoor as the MD and CEO since its inception in 2004, and the time consuming challenges of finding a suitable successor, he should be given further time in his current position beyond January 31, 2019. The lender has requested the RBI that Kapoor be granted an extension at least till April 30, 2019, for finalisation of audited financial statements for year ending March 31, 2019.

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