Finance

Yes Bank's exposure to NBFCs under RBI inspection: report

Updated : November 27, 2018 09:00 AM IST

The Reserve Bank of India's (RBI) banking supervision team is inspecting all the statements since the sanction date of the loans to these accounts, internal and statutory auditor observations and disclosures terms, among others, the report said.

The examination is a follow-up to the letter that the top bank wrote to Yes Bank last week which sought detailed statements on these exposures, the paper said.

Yes Bank's exposure to NBFCs under RBI inspection: report

The Reserve Bank of India is examining Yes Bank’s exposure to non-banking finance companies — Infrastructure Leasing and Financial Services Ltd (IL&FS), Dewan Housing Finance Corp Ltd (DHFL), Indiabulls Group, and Sudhir Valia-promoted entities Fortune Financial Services India Ltd and Suraksha ARC, Mint reported, citing sources.

The central bank's banking supervision team is inspecting all the statements since the sanction date of the loans to these accounts, internal and statutory auditor observations and disclosures terms, among others, the report said.

The examination is a follow-up to the letter that the top bank wrote to Yes Bank last week which sought detailed statements on these exposures, the paper said.

“RBI is trying to see the interconnectedness between Yes Bank and non-banking financial companies (NBFCs) against the backdrop of the IL&FS crisis,” sources told the paper. “These investigations are different from the annual inspection, as they are quick and targeted in nature. However, there is nothing unusual.”

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