Of course it is likely to have an impact and Fitch Ratings Fitch has warned that Yes Bank could have a deep impact on the asset quality of NBFCs. Fitch expects it would impact the cost of funds for NBFCs as well as their liquidity position. The overall exposure of Yes Bank to NBFCs is quite small at 1%. What Fitch worries is the impact of the write-down of AT1 (Additional Tier 1) bonds as it could raise the cost of funds for NFBCs. Most NBFCs rely on banks as their primary source of funding and banks are becoming wary of loans to NBFCs. Fitch is already closely reviewing the access to fund as well as the liquidity position of NBFCs. The only concern is that, like in 2018, it could be a double whammy for the NBFCs where the cost of funds goes up and the liquidity also becomes tight.