Yes Bank stock has been under pressure for the past several months over concerns on its exposure to the real estate sector. These concerns got accentuated during this week. On Thursday, the shares of YES Bank fell sharply by over 15% after Moody’s Investor Services warned that the exposure to Altico Capital’s default was credit negative for the banks with significant exposure to the real estate sector. This led to a sharp fall in stocks like Yes Bank and IndusInd Bank, both of whom have a substantial exposure to the realty sector in India. The stress in the realty sector had come out in the open when Altico, a high profile lender to real estate projects, defaulted on its ECB commitments.

The stock of Yes Bank got a sharp knock also because CARE Ratings had downgraded the ratings of non-convertible debentures (NCDs) of Morgan Credits Private Ltd, which is one of the private lender’s promoter entities of Yes Bank. Yes Bank has found itself in the wrong side of investors due to its exposure to stocks like IL&FS, DHFL, Jet Airways and now Altico.