Don’t miss the latest developments in business and finance.

Yes Bank shares drop 3 pc on downgrade warning

Image
Press Trust of India New Delhi
Last Updated : Jun 12 2019 | 4:25 PM IST

Shares of Yes Bank dropped over 3 per cent Wednesday after Moody's placed the private sector lender's ratings under review for a possible downgrade.

The scrip declined 3.34 per cent to close at Rs 134.65 on the BSE. During the day, it fell 3.94 per cent to Rs 133.80.

It was the worst hit among the 30-share front-line companies.

At the NSE, shares went lower by 3.18 per cent to close at Rs 135.10.

In terms of traded volume, 44.69 lakh shares were traded on the BSE and over five crore shares on the NSE during the day.

Moody's Investors Service has placed Yes Bank's ratings under review for a possible downgrade citing its high exposure to the struggling NBFC and realty sectors.

The agency has a "Ba1" rating on the lender, which has a 6.4 per cent exposure to NBFCs and housing finance firms and 7 per cent to realty companies as of March 2019 quarter.

"The ongoing liquidity pressures on finance companies will negatively impact the credit profile of Yes Bank, given its sizeable exposure to weaker companies in the sector," a Moody's note said Tuesday.

Also Read

First Published: Jun 12 2019 | 4:25 PM IST

Next Story