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Contagion Risk on India Seen From Modi’s Move to Seize Yes Bank

Bloomberg business news
India Seizes Yes Bank
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India’s move to take control of beleaguered lender Yes Bank Ltd. could lead to a plunge in the riskier assets of Asia’s third-largest economy, according to analysts.

The rescue illustrates the widening damage from India’s shadow banking crisis, which has left the lender with a growing pile of bad loans. India benchmark Sensex Index dropped as much as 3.8% on Friday, set for its biggest fall since August 2015 while the rupee and the government bond yields also slumped. Shares in Yes Bank and State Bank of India Ltd. fell more than 10% each.