The Reserve Bank of India (RBI) has begun investigating Yes Bank’s exposure to cash-strapped Infrastructure Leasing and Financial Services (IL&FS), Dewan Housing Finance Corp (DHFL), Indiabulls Group and Sudhir Valia’s Fortune Financial Services India and Suraksha ARC, according to a report. Following an RBI missive to Yes Bank seeking details of the exposure on November 22, the central bank’s supervision team has started going through statements issued since the date of sanction of loans to these companies. The team is also inspecting internal and statutory auditor observations and terms of disclosure. This inspection is quick and targeted in nature, a source told the paper. “RBI is trying to see the interconnections between Yes Bank and non-banking financial companies (NBFCs) against the backdrop of the IL&FS crisis. These investigations are different from the annual inspection,” the source added. Yes Bank reported an exposure of Rs 2,600 crore to IL&FS in its second quarter results. The bank’s share of loans given to housing finance companies (HFCs) is 3.2 percent, while NBFCs’ share is 2.6 percent.
RBI examining Yes Bank’s exposure to IL&FS, DHFL, NBFCs: Report
