Economic Times reported that Yes bank shares are trading in losses today and besides Yes Bank, the PNB, ICICI and IDFC First bank are the main losers. Among the list of losers, Kotak Mahindra, HDFC and Axis Bank are also doing poor trading. The reason for the fall in Yes Bank share market is default by borrowers of near about 1200 crores loan. As a result of which it slumps over 6%, and its share market goes down.
Economic Times reports that Radius Developers that is Mumbai based company has made defaults in scheduled interest payments of around 30 crores. However, the spokesperson of Radius Developer is committing to pay this 30 crore interest before 5th July. The interest payment is delayed by 45-60 days. The account of Radius Developers is currently categorized under the SMA-2 category. The necessary provisions have been created if this default continues and crosses 90 days period. The project for which Radius Developers borrowed a loan from Yes Bank is located in Chembur. The project development has been delayed by four years. The reason is environmental clearances that caused a delay in this project. The Radius Developer thought of selling the project. As a result, it agreed with NBFC of selling the part project at a much lower price of 360 crores. NDFC flow of funds squeezed due to the IL&FS crisis and deal could not be completed