Anil Ambani: Suresh Ganapathy and Bank Stocks

anil ambani: Other weaker lenders such as Dewan Housing Finance Corp. and Anil Ambani's Reliance Capital Ltd. are struggling, putting the loans they received from a handful of the regulated banks at risk. ; There will be some defaults, some additional slippages on banks' books from the NBFC sector and that will be reflected in the performance of some of the bank stocks, which are more exposed to the weak NBFCs, said Suresh Ganapathy, an associate director overseeing financial research at Macquarie Capital Securities in India, according to The Japan Times. Among the most vulnerable is Yes Bank Ltd., which has seen its shares plunge 65 percen t in the past year amid wider worries about its lending policies. A year after a series of defaults by Infrastructure Leasing & Financial Services Ltd. forced the government to intervene and exposed weaknesses in the sector, the problems of India's non-bank financial companies are entering a new phase. Last week, Moody's Investors Service put Yes Bank under review for a downgrade, citing its sizable exposure to weaker companies in the NBFC sector. The lenders showed the greatest vulnerability to new risks emerging in this area and from nonbanks and real estate firms, it said. Yes Bank and Indus Ind Bank Ltd. may face higher than expected credit costs due to their lending to companies related to large leveraged corporates, UBS AG wrote in a June report. (news.financializer.com). As reported in the news.