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YES Bank slips over 2% as RBI begins inspecting bank's exposure to NBFCs

Shares of YES Bank slipped as much as 2.1 per cent to Rs 184 in the intra-day trade on NSE after a news report suggested that the RBI on Monday began examining the private bank's exposure to NBFCs

SI Reporter  |  New Delhi 

YES Bank Photo: Reuters
YES Bank Photo: Reuters

Shares of slipped as much as 2.1 per cent to Rs 184 in the intra-day trade on the National Stock Exchange (NSE) after a report suggested that the (RBI) on Monday began examining the private bank's exposure to various Non-Banking Finance Companies (NBFCs).

"The central bank's supervision team is going through all the statements since the date of sanction of loans to these accounts. The team is also inspecting the internal and statutory auditor observations and terms of disclosures, among other documents. This inspection is a follow-up to a letter that the wrote to last Thursday seeking detailed statements regarding these exposures," the Mint reported.

The list of NBFCs include Infrastructure Leasing and Financial Services (IL&FS), Dewan Housing Finance Corporation (DHFL), and Sudhir Valia-promoted entities and

is trying to see the interconnectedness between and non-banking financial companies (NBFCs) against the backdrop of the crisis,” the report said. “These investigations are different from the annual inspection, as they are quick and targeted in nature. However, there is nothing unusual,” it added.

In the September quarter earnings YES Bank disclosed an exposure of Rs 26.6 billion to On Monday, shares of YES Bank fell as much as 7 per cent in intra-day trade amid concerns over the rating outlook of YES Bank’s promoter-issued non-convertible debentures (NCDs). However, these concerns were allayed to some extent, as sources said the bank’s promoter companies had prepaid Rs 4 billion of the outstanding loans to the two mutual fund (MF) houses holding the debentures.

According to sources, Franklin MF and Reliance MF each received Rs 2 billion from the promoter companies.

At 12:25 pm, shares of YES Bank were trading 1.09 per cent lower at Rs 185.90 apiece on BSE. In comparison, the S&P BSE Sensex was trading flat at 35,334, down 20 points.

First Published: Tue, November 27 2018. 12:42 IST
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