YES Bank debt writedown to raise borrowing cost, hit sector capital-raising

RBI said it would work on a revival plan, as part of which bonds classified as AT1 capital will be written down "permanently, in full"

The unexpected writedown of some bonds issued by crisis-hit Indian lender Yes Bank Ltd as part of a state-led rescue is set to raise borrowing costs and make capital-raising tougher for other banks, investors and analysts said.

The take over of Yes Bank by India's central bank last week comes against the backdrop of a string of scandals in the country's financial sector in the last couple of years - from a $2 billion fraud at a large state-owned bank to mismanagement of funds at shadow banks.

The Reserve Bank of India (RBI) said it would work on a revival plan, as