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Yes Bank, IndusInd stocks tumble after UBS slashes price target


shares dropped over 11 per cent and IndusInd Bank's by nearly 8 per cent on Thursday afternoon after Swiss multinational brokerage house slashed price target sharply by 47 per cent and 18 per cent respectively citing weak earnings going ahead.

At 1 pm, was trading at Rs 119.85 per share, down 11.06 per cent, while was down 7.93 per cent at Rs 1,445.90 per share.

downgraded to sell and cut target to Rs 1,400 from Rs 1,700 earlier. In the case of Yes Bank, the brokerage maintained sell rating and slashed the target to Rs 90 from Rs 170 apiece.

"Lending to non-investment grade against main is high for both banks, which does not appear to be fully priced in," said in a report.

It also added that the concentration of lending to weak is also high for Yes Bank, and

Another reason for the fall in and is their exposure to Dewan Housing Corporation, which defaulted on interest repayment last week.

On Wednesday, placed Yes Bank's Ba1 foreign currency issuer rating under review for a downgrade. The US credit rating agency said the review takes into account ongoing liquidity pressures on companies, which may negatively impact the credit profile of Yes Bank, given its sizeable exposure to weak companies in the sector.


(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 13 2019. 13:09 IST