Global ratings agency Moody's on Wednesday placed private sector lender Yes Bank's ratings under review for downgrade, further confounding the pains for the lender that has been dogged by many an issue since the past one year.
The Ba3 rating of the bank can be downgraded because of the weak September quarter earnings and the bank managing to get only a commitment for USD 1.2 billion in funding recently, the agency said.
Moody's also sees the bank's total dud asset to top 12 percent this year basing on bank's own assessment of over 40 percent of its Rs 30,000-crore of exposure to lower rated entities turning sour before March.
The bank has been passing through a tumultous period ever since the Reserve Bank asked the promoter-chief executive Rana Kapoor to leave the bank by January 31, 2019 in August last year over concerns on governance and loan practices, and his successor Ravneet Gill disclosing large underreported stressed assets.
Under Gill, the bank reported its maiden loss in the March quarter and the strain on asset quality continues.