"Why should YES Bank not be handed down one as a future deterrent?" a source asked.Following RBI's order, the bank had to disclose the RBI warning to it and its stock price went down 1.72 per cent to Rs 217.45 on February 15. In the last one month, RBI has fined several banks over this. It will be just signalling that there is a violation, he said.Recently RBI imposed a Rs 5 crore penalty on four PSBs -- a penalty of Rs 2 crore on Corporation Bank and Rs 1 crore each on State Bank of India Bank of Baroda and Union Bank of India . Again, in FY17, the central bank had found the private lender's divergence at Rs 6,355 crore, or three times the reported bad loans.

Source: Economic Times February 17, 2019 07:41 UTC