YES Bank fallout: Troubled borrowers may soon face a serious credit crunch

A wide swathe of YES Bank’s borrowers may soon face a serious credit crunch. A reappraisal of their credit worthiness is on the cards, and with not many safe ports of call, it will be tough sailing ahead.
 
A substantial portion of YES Bank’s corporate loans are “bilateral transactions”, and fall outside the pale of consortium lending.
 
In FY19, it had recorded growth of 18.7 per cent in advances to Rs 241,500 crore, primarily due to an increase in term-loans. Corporate banking accounted for 65.6 per cent of this portfolio, while retail and business banking (micro-medium and small