NEW DELHI: Shares of Yes Bank tumbled over 7 per cent in trade on Tuesday after ET reported that a Mumbai-based Radius Developers has defaulted on scheduled interest payments on a Rs 1,200-crore loan to the private lender.The company, which has delayed interest payments by 45-60 days, has exposure of about Rs 5,500 crore to the banking system. "The Radius Developers account is currently in the SMA-2 category and it has delayed interest payments of Rs 30 crore,” said an official familiar with the matter. “We have made requisite provisions on the account if they don’t pay before the 90-day period.”A Radius Group spokesperson told ET that the company will be paying the interest component of Rs 30 crore to Yes Bank by July 5.The Radius Group project that Yes Bank had funded is located in Chembur, a sprawling northeast Mumbai suburb. The development has been delayed by about four years due to want of environmental clearances. The developer had got into an agreement with a prominent NBFC last year to sell a part of the project at a lower rate for Rs 360 crore.

Source: Economic Times July 02, 2019 04:35 UTC