Mumbai, March 12 (TIWN) India's non-bank financial institutions (NBFI) will likely face renewed pressure on funding and liquidity following the Reserve Bank of India's takeover of Yes Bank, Fitch Ratings said on Wednesday.

"The move comes as the impact of the coronavirus is beginning to be felt in India, raising further risks to economic growth and NBFI asset quality. Rising asset quality and funding risks will place pressure on ratings if conditions worsen materially," Fitch Ratings said in a commentary.  "The NBFI sector's direct exposures to Yes Bank should be modest as a whole. Yes Bank's issues have been known for some time, and companies have had time to pare back any exposure to the bank over the past year."  As per the commentary, Yes Bank's advances to NBFIs equated to roughly 1-2 per cent of the NBFI sector's total bank funding, and the sector's asset exposures to the bank would be similarly moderate.  "This is the case for Fitch's rated portfolio of Indian NBFIs, although companies such as Shriram Transport Finance Company Limited (BB+/Stable) and Indiabulls Housing Finance Ltd have disclosed some holdings in Yes Bank securities," the commentary said.