Yes Bank Ltd., one of India’s largest private sector lenders, saw its dollar bonds sell-off by a record 5.5 cents to 80.9 cents on the dollar, the lowest since the bonds were sold in 2018. This was on the back of investor concerns over the health of India’s finance sector amid a shadow banking crisis. Yes Bank has sizable exposure to the cash-strapped shadow lenders in the country, who were exposed to the shocking defaults last year by a major infrastructure lender. Despite market worries around the asset quality of its corporate debt portfolio, the bank said in a statement that its financial and operating metrics remain “intrinsically sound” and stable, with its liquidity position “well in excess of regulatory requirements”.
