Yes Bank down for 4th straight session, falls 17% to hit 6-year low
- Moody's said banks such as Yes bank and Indusind Bank which have the largest direct exposure to commercial real estate
- Moody's said real estate financier Altico Capital India Ltd's default is credit negative for banks with significant exposure to real estate sector
Down for the fourth straight day, shares of Yes Bank Ltd on Thursday slumped over 17% to hit a six-year low.
Intraday, on BSE, the stock touched a low of ₹54.30, a level last seen on 5 September, 2013, falling 17.2%. At 3.15pm, the stock traded at ₹54.70 on BSE, down 15% from its previous close. So far this year it has fallen 70%.
Rating agency Moody's on Thursday said real estate financier Altico Capital India Ltd's default is credit negative for banks with significant exposure to real estate sector. The default signals increasing tight liquidity among property developers, said the agency.
Moody's said banks such as Yes bank and Indusind Bank which have the largest direct exposure to commercial real estate would be susceptible to asset quality difficulties if the real estate sector continues to slow. Other banks like ICICI Bank and Axis bank also have significant exposure to the sector.
On Wednesday, Care Ratings downgraded ratings of Morgan Credit Pvt Ltd (MCPL) to BBB minus from A minus on account of the fall in stock price of the underlying shares of YES Bank Ltd which are held by the company.
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