YES Bank stock fall hits MFs, holding value in lender drops sharply

Fund houses held shares worth Rs 84 billion in the private sector lender at the end of September

The drop in share prices of YES Bank has weighed on the net asset values (NAVs) of several mutual fund (MF) schemes. 

Shares of YES Bank, which is part of the Sensex and Nifty, are down 57 per cent from their all-time highs of Rs 394 on August 20. 

The drop comes amid uncertainty over leadership succession at the bank, concerns over governance practices, and a ratings downgrade, which could raise borrowing costs and hit margins.

An analysis of the market data indicates the value of MFs’ equity holdings in YES Bank is down 30 per cent since the September