16
By Denise WeeOne of India’s largest private sector lenders slumped by a record in the bond market on Wednesday, as concerns mount over the health of the nation’s finance sector amid a shadow banking crisis.
Dollar bonds of Yes Bank Ltd., which has sizable exposure to the cash-strapped shadow lenders, slumped a record 5.5 cents to 80.9 cents on the dollar on Wednesday, the lowest since the bonds were sold in 2018.
The bank is at the epicenter of rising stress in India’s credit markets, where shock defaults last year by a major infrastructure lender have led to broader strains at other shadow banks.
Yes Bank’s shares collapsed about 23% on Tuesday to the lowest since 2009, amid concerns that a cleanup in corporate debt could drag on.
Debt woes among India’s non-bank lenders including Indiabulls Housing Finance Ltd.
have also prompted jitters for the sector.
“The stock and bonds both are reflecting investor concerns on asset quality, where slower resolutions and rising stress could continue to pose pressure,” said Diksha Gera, a Bloomberg Intelligence analyst.
A report that Yes Bank shares pledged by its co-founder Rana Kapoor, have been sold, has also weighed on the bank’s shares.
The India stock market is closed today for a holiday.
Kapoor stepped down as chief executive officer earlier this year after the Reserve Bank of India refused to grant him another three-year term amid a controversy over bad-debt accounting.
Stock Market
YES Bank bonds slump by record after stock crash
Download Android App
Share in 
FullScreen CheckVideos
| Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021 |
Buy Our Merchandise (Peace Series)
SCAN and Contribute
- Details
- Category: Stock Market
21