Private sector banks' pledged shares exposure up by a third since January

Increased pledging is often seen as a sign of liquidity issues with promoter groups

Private sector lender YES Bank recently saw a sharp extended decline because of its exposure to the shares of CG Power and Industrial Solutions.  It held 12.8 per cent stake in the company following invocation of pledged shares in May. The fall came after the company revealed improper accounting in an exchange disclosure last week.  

But YES Bank is not the only one with exposure to pledged shares.

An analysis of pledged shares data from corporate tracker NSE Infobase shows that the total pledged shares exposure to private sector banks has risen by a third since January. This coincides with