Yes Bank slumped by a record in the bond market on Wednesday, as concerns mount over the health of the finance sector amid a shadow banking crisis.

Dollar bonds of Yes Bank , which has sizable exposure to the cash-strapped shadow lenders, slumped a record 5.5 cents to 80.9 cents on the dollar on Wednesday, the lowest since the bonds were sold in 2018.

The bank is at the epicenter of rising stress in India’s credit markets, where shock defaults last year by IL&FS have led to broader strains at other NBFCs. Yes Bank’s shares collapsed about 23 per cent on Tuesday to the lowest since 2009, amid concerns that a clean-up in corporate debt could drag on.

Read more:Yes Bank shares crack 20% in afternoon trade

Debt woes among India’s non-bank lenders including Indiabulls Housing Finance have also prompted jitters for the sector.

“The stock and bonds both are reflecting investor concerns on asset quality, where slower resolutions and rising stress could continue to pose pressure,” said Diksha Gera, a Bloomberg Intelligence analyst.

A report that Yes Bank shares pledged by its co-founder Rana Kapoor, have been sold, has also weighed on the bank’s shares. The stock stock market is closed today on account of Gandhi Jayanti.

Related news:Rana Kapoor’s wealth shrinks by $1 billion as Yes Bank shares tumble

Kapoor stepped down as chief executive officer earlier this year after the Reserve Bank of India refused to grant him another three-year term amid a controversy over bad-debt accounting.

Also read:Rana Kapoor leaves Yes Bank, Ajai Kumar interim CEO

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