Private sector lender Yes Bank on Friday said it has received a letter from the Reserve Bank of India (RBI) stating that the press release by the bank on nil divergence breaches confidentiality and violates regulatory guidelines.

RBI viewed the issuance of the press release as a serious matter and said that it could entail further regulatory actions against Yes Bank, the lender said in a regulatory filing.

On Wednesday, Yes Bank had said the RBI has not found any divergence in the asset classification and provisioning done by the lender during 2017-18.

The nil divergence is not an achievement to be published and is only compliance with the extent income recognition and asset classification norms, RBI said in a letter.

RBI said the Risk Assessment Report (RAR) issued to Yes Bank had identified several other lapses and regulatory breaches in various areas of the bank's functioning and the disclosure of just one part of the report is viewed by the central bank as a deliberate attempt to mislead the public.

The RBI assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes.

Yes Bank's shares surged 30 percent early on Thursday in their sharpest ever intraday jump, a day after the central bank cleared the private sector lender of any divergences in bad loan reporting practices.

Shares of Yes Bank on Friday settled at Rs 218.70 apiece on the BSE, down 1.04 percent from its previous closing.

First Published:Feb 15, 2019 10:45 PM IST