Shares of Yes Bank fell 7.7 per cent, as it headed toward biggest daily percentage fall since September 2013.
UBS downgraded stock to anti-consensus “sell” from “buy”. UBS said, “the lender is among banks with relatively higher share of loan approvals to potentially stressed companies”.
According to UBS, bank most vulnerable to a prolonged weak credit cycle and consensus may not be ready for a sharp increase in its credit costs.
Yes Bank CFO Rajat Monga told a news channel that report uses “highly exaggerated numbers”, and “exposure to stressed companies will be half of what UBS reported”.
(Inputs from Reuters)