Yes Bank shares came under pressure for the fifth straight session on Tuesday amid concerns over its exposure to Indiabulls Housing Finance. In intra-day deals, the stock tanked as much as 30 percent to hit its 10-year low of Rs 29 per share on BSE. The overall market capitalisation of the firm also fell below Rs 8,500 crore on BSE

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The stock was trading 23 percent lower on BSE at Rs 32 as compared to 1 percent or 362 point fall in BSE Sensex at 38,305. In the last five days, the scrip has tumbled 43 percent. It has cracked over 84 percent in the last one year.

Yes Bank's exposure to Indiabulls Housing Finance has gone down around 30 percent over the last few months, said Ravneet Gill, managing director and CEO of the bank. Gill's clarification came as the stock has been under pressure due to concerns over its exposure to the housing finance firm, which is in talks with Lakshmi Vilas Bank for a merger.

“Over the last two quarters, this (Indiabulls) exposure has come down 30 percent, it is well collateralised, the account has performed exceedingly well, we have never had a day’s delay in repayments. So we do not feel concerned about that exposure right now and it’s not as large as it has made out to be," Gill clarified in an interview with CNBC-TV18.

Yes Bank in a BSE filing on Monday said recent market rumours and reports about money laundering allegations against Indiabulls appear to have generated a lot of speculation around the private sector lender.

"We strongly refute them as being speculative, unsubstantiated, and irresponsible," Ravneet Gill, MD, and CEO, Yes Bank said. While this has impacted the share price adversely, the bank would like to state that it's capital and liquidity position are comfortably above the regulatory threshold and the asset quality is in line with the guidance provided post-Q1FY20 results, according to the statement.

The bank's outstanding exposure to the housing finance/real estate conglomerate (Indiabulls) is totally secured and over the last six months there has been a reduction of approximately 30 percent in this exposure, it said.

Subsequent to receiving the go-ahead from the Reserve Bank of India on Friday (September 27), the bank is firmly on track to raising the required growth capital, it added.

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First Published:Oct 1, 2019 1:42 PM IST