InvestorQ : Moody has downgraded ratings for YES Bank... stock has crashed. Does this rating reflect on the asset-ratio of the bank or practices?
Tushar Jambhekar made post

Moody has downgraded ratings for YES Bank... stock has crashed. Does this rating reflect on the asset-ratio of the bank or practices?

Answer
image
Tisha Malhotra answered.
3 years ago
Follow

Stock price of YES crashed due to breach of trust due to divergence in not disclosing the correct NPA or Non-Performing Asset. YES bank reported NPA of Rs. 2018 crores while RBI records state that it has NPA of Rs. 8374 crores. There is a gap of Rs. 6356 crores which gave a wave of mistrust on YES Bank Management in the market and leading the price to fall and Moody’s downgrade.

Asset-ratio is rerived by dividing the current value of marketable securities and cash, by the company's current liabilities. Since there is a divergence in NPA, Asset-ratio of bank is surely at stake.

4 Views

image
Ashwini Kadam answered.
2 years ago
Follow
Stock price of YES crashed due to breach of trust due to divergence in not disclosing the correct NPA or Non-Performing Asset. YES bank reported NPA of Rs. 2018 crores while RBI records state that it has NPA of Rs. 8374 crores. There is a gap of Rs. 6356 crores which gave a wave of mistrust on YES Bank Management in the market and leading the price to fall and Moody’s downgrade.
0 Views