Yes Bank's exposure to Indiabulls Housing Finance has gone down about 30 percent over the last few months, said Ravneet Gill, managing director and CEO of the bank. Gill's clarification came as the stock has been under pressure due to concerns over the lender's exposure to Indiabulls Housing.
Yes Bank came under intense selling pressure on Monday and closed 15 percent lower. The stock has lost 75 percent this year.
“Over the last two quarters, this (Indiabulls) exposure has come down 30 percent, it is well collateralised, the account has performed exceedingly well, we have never had a day’s delay in repayments. So we do not feel concerned about that exposure right now and it’s not as large as it has made out to be," Gill clarified in an interview with CNBC-TV18.
However, he added that the exposure to the overall NBFC sector is magnified on account of a couple of concentrated accounts.
Talking about the business, he said, “If we look at the bank and the performance of the bank relative to 6 months back, all the parameters that we had set for ourselves in terms of building more granular businesses, stabilising the asset book, shoring up liabilities, getting cost of funding down, I think we have ticked all those boxes. Therefore, today we think we are in a much better position than we were 6 months ago and we will continue to strengthen."
Talking about NPAs, Gill said, “What progress we have seen with regards to these three (ADAG, Essel Group and DHFL)... we continue to manage all these 3 exposures in a satisfactory fashion and there is nothing which would suggest that they are moving in a direction which is contrary to what we had anticipated."
On capital raising front, he said, “The traction that we have in terms of larger capital raise is much better and stronger than what the market is giving us credit for.”
Gill added that Q2 has continued to "see shrinkage of our wholesale book and growth of our retail book."