Yes Bank shares crack 16 pc; m-cap drops by Rs 1,046 cr on Altico exposure concerns

Shares of Yes Bank on Thursday plummeted nearly 16 per cent, wiping off Rs 1,046.07 crore from its market valuation, after a Moody's report said the Altico default may be credit negative for banks given their significant exposure to the real estate sector.

The scrip cracked 15.52 per cent to close at Rs 54.15 on the BSE. During the day, it plunged 17.23 per cent to Rs 53.05, its one-year low.

On the National Stock Exchange (NSE), shares dropped 15.75 per cent to close at Rs 54 apiece.

Led by the sharp fall in the scrip, the company's market valuation tumbled Rs 1,046.07 crore to Rs 13,809.93 crore on the BSE.

It was the top loser on both the Sensex and the Nifty.

In terms of trading volume, 199.73 lakh shares were traded on the BSE and over 32 crore shares on the NSE during the day.

Among the banks Moody's rates, Yes Bank and IndusInd Bank have the largest direct exposure to commercial real estate and will be susceptible to asset quality difficulties if the sector continues to slow, the agency said.

"Altico default signals increasingly tight liquidity among property developers, which is credit negative for banks given their significant exposure to the real estate sector," global rating agency Moody's said in a report on Thursday.

ICICI Bank and Axis Bank are also significantly exposed to the sector, with commercial real estate loans making up over 5 per cent of their overall loans, it added.

IndusInd Bank, ICICI Bank and Axis Bank fell up to 3.59 per cent.

In the broader market, the Sensex ended 470.41 points lower at 36,093.47.