YES Bank on Moody’s downgrade watch
Moody’s has placed YES Bank’s ratings under review for a downgrade. It has raised concerns over the high exposure of the private sector lender to the struggling NBFC and real estate sectors.
“The review for downgrade takes into account Moody’s expectation that the ongoing liquidity pressures on Indian finance companies will negatively impact the credit profile of YES Bank, given the bank’s sizeable exposure to weaker companies in the sector,” the agency said in a statement on Tuesday.
Moody’s said it expects significant pressure on the bank’s asset quality, profitability and capital position due to these headwinds, but said the proactive provisioning in the March quarter will cushion the impact of the anticipated stress.
In a separate development, non-executive independent director Mukesh Sabharwal has resigned from the bank’s board a day ahead of its annual general meeting.