The investments in AT-1 bonds of Yes Bank were made in 2017, as a part of its treasury management of over Rs 20,000 crore of cash and when bank was worth over $10 billion in value. Indiabulls Housing Finance has no term loans outstanding from Yes Bank, the company said in a statement on 8 March 2020.

"Sameer Gehlaut, promoter of Indiabulls Housing Finance or any of his companies or any of his family member companies have no loans outstanding from Yes Bank," it added.

The Reserve Bank of India (RBI) on 5 March 2020 superseded the board of directors of Yes Bank and appointed Prashant Kumar as the administrator of the bank. Yes Bank was placed under moratorium by an order notified by the Central Government on 5 March 2020.

RBI released the draft of Scheme of Reconstruction of Yes Bank. As per the draft scheme, the instruments qualifying as AT-1 capital shall stand written down permanently, in full.

Indiabulls Housing Finance's primary business activities are to carry on business of investing and finance related activities (investing in various subsidiaries, financing of loans and credit activities) and fee income, which mainly consists of financial service related fee income from services, selling of insurance products as a licensed corporate agent, and other related ancillary services.

The company's consolidated net profit fell 44% to Rs 551.70 crore in Q3 December 2019 as compared to Rs 985.51 crore reported in Q3 December 2018. Total income stood at Rs 3369.76 crore in Q3 December 2019, down by 24.7% from Rs 4477.97 crore in Q3 December 2018.