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Last Updated : Jan 17, 2020 10:14 AM IST | Source: Moneycontrol.com

Yes Bank tumbles 7% on Moody's ratings review; AGR verdict a negative

According to Credit Suisse, the overall telecom AGR dues amount to Rs 3.13 lakh crore, while aggregate bank exposure to telecom sector is at Rs 1.3 lakh crore

 
 
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Yes Bank share price declined nearly 7 percent intraday on January 17 after Moody’s placed the stock's rating under review.

On January 17, Moody's Investors Service placed the bank's long-term foreign-currency issuer rating of B2 under review, with the direction uncertain, reported CNBC-TV18.

Also, brokerages fear that bank will take a hit on exposure to telecom companies as the Supreme Court rejected review petition filed by telecom companies seeking relief from the Adjusted Gross Revenue (AGR) verdict.

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According to Credit Suisse, the overall telecom AGR dues amount to Rs 3.13 lakh crore, while aggregate bank exposure to telecom sector is at Rs 1.3 lakh crore.

Out of which, IDFC First, Yes Bank & IndusInd’s exposure is 8-12% of the net worth to Vodafone Idea.

Meanwhile Nomura said that the AGR verdict is negative for banks, and that  Vodafone Idea has Rs 22,500-25,000 crore of funded exposure.

At 09:39 hrs Yes Bank was quoting at Rs 38.40, down Rs 1.55, or 3.88 percent on the BSE.

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First Published on Jan 17, 2020 10:14 am
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