Dewan slumped more than 12% while Reliance Capital fell about 7%. Among banks on the 10-member Bankex index, Yes Bank and IndusInd Bank, which have high exposure to non-bank lenders, clocked the biggest drop with loses of more than 3%. The RBI's latest concerns center on the risk that a credit crunch at non-bank financial companies could lead to defaults and higher borrowing costs, with spin off effects on the traditional lenders. The NBFCs and HFCs have funded themselves by borrowing from banks, mutual funds, insurers, and pension funds, exposing other financial firms in the event of a default. Indian banks have extended about 7% of their loans to NBFCs. Additional risks stem from their investments in the companies' bonds. The failure of the HFC with the maximum capacity to cause solvency losses will lead to a loss of 5.8% of the tier-1 capital across the banking system, and the failure of one bank, according to the RBI stress tests.