RBI imposed penalties on Yes bank and IDFC bank of amounts Rs 6 Crore and 2 Crore respectively for contravention of regulatory restrictions pertaining to loans and advances.
Details:
Both Yes Bank and IDFC Bank has been fined for various reasons. Yes bank has been slapped as a result of breaking guidelines on classifying non-performing assets and failing to report a security incident that was involved with its ATMs on time. As per RBI warning, Yes Bank violated the Income Recognition Asset Classification (IRAC) rules on managing assessment of bad credits as of March-end 2016.
The bank was among other two banks who has shown a sharp divergence between their asset quality classification and provisioning for 2015-16. In the report for 2016-17, Yes Bank had shown bad loan classification of Rs748.9 crore in March 2016 end but the actual figures were much higher as per RBI report. RBI’s assessment of bad loans was 558% more than what Yes Bank had reported which was equal to Rs.4,176 crore.
IDFC Bank on the other hand has been imposed Rs.2 Crore fine for breaching regulations on providing loans and advances. According to the banker’s bank, the status report of IDFC as per its financial conditions as on December 31, 2016, uncovered non-adherence with specific directions relating to authorize and renewal of advances and loans.
