Audit by the RBI Yes Exposure to loans IL & FS, DHFL, NBFC on bank loans

In its second quarter results, Yes Bank reported a 2,600 crore exposure to IL & FS. Photo: Abhijit Bhatlekar / Mint

Mumbai: ] The Reserve Bank of India (RBI) began Monday to inspect Yes Bank's exposure to the following entities: Fortune Financial Services India and Dewan Housing Finance Corp. (DHFL), Indiabulls Group and Forthir Valia, entities promoted by Sudhir Valia. Ltd and Suraksha ARC, indicated two senior officials aware of the case.

The RBI Banking Supervision Team is currently reviewing all statements since the date of approval of loans in favor of these accounts, the observations of the internal and statutory auditors as well as the terms and conditions of the accounts. information to be provided. The inspection follows a letter that the central bank sent Thursday to the bank Yes, asking for detailed statements on these exposures.

"The RBI is trying to see the interdependence between Yes Ba non-bank and non-bank financial companies (NBFC) in the context of the IL & FS debt crisis," said one of the leaders cited above. "These surveys differ from the annual inspection because they are quick and focused. However, there is nothing unusual. "

A Yes Bank spokesperson did not comment until it went to press.

In its second quarter earnings, Yes Bank revealed an exhibition from 2600 crore to IL & FS, which is currently standard on the bank's books.The bank also has 3.2% of its loan portfolio exposed to housing finance companies and 2.6% to NBFC

Since September of this year, market and bank regulators have been looking at the fallout from the defaults of IL & FS and its corporate group, which has led to a liquidity crisis. in the banking system.This operation was followed by the brutal sale of Dewan Housing bonds held by DSP Mutual Fund in connection with a loss, fearing pressure on redemptions.

The Securities and Exchange Board of India has also requested information from mutual funds about leu r exposure to all NBFCs and housing finance. companies. The mutual fund industry holds cumulatively 2,800 crore securities sold by IL & FS and its related entities.

Bloomberg announced Monday that two mutual funds, Reliance Mutual Fund and Franklin Templeton, had invested in non-convertible badets. the bonds sold by Yes Bank's co-founder and CEO, private investment firm Rana Kapoor, Morgan Credits Pvt Ltd. The Kapoor family, which holds 3.04% of its stake in Yes Bank through Morgan Credits, used the vehicle to monetize its shares without pledging them, according to the report, 1965, Yes Bank lost £ 1879.00 against ESB, a decrease of 3.89%, a performance lower than that of the Senbad benchmark, a gain of 1.07%.

Last year, Yes Bank reported a discrepancy in the accounting for its non-performing badets. .

In September, RBI rejected the bank's proposal to extend Mr. Kapoor's term as chief executive and set a deadline of January 31 for finding a successor. Board members, including those of Ashok Chawla and R. Chandrashekar, later moved off the list.