Shares of Yes Bank crashed after CG Power's risk and audit committee reported of unauthorised transactions carried out by "certain employees" of the company. After 13 hours of discussion, the committee in the early hours on Tuesday also said that the transactions have led to the understatement of not only the company's liabilities but also its advances made to parties (both related and unrelated) of the company and group.

Yes Bank, which holds 12.79 percent stake in CG Power, saw its share prices reacting to the news with a fall of close to 7 percent to an intraday low of Rs 71 apiece on NSE. Shares of CG Power and Industrial Solutions Ltd tanked close to 20 percent to its 52-week low of Rs 14.80 each.

LIC holds 2.25 percent stake in CG Power as of June 2019.

The exchange filing post the meeting also revealed that "certain assets of the Company that were purportedly provided as collateral without due authority; and the Company was made a co-borrower and/or guarantor for enabling ostensibly unrelated third parties to obtain loans without due authorisation."

The highly volatile shares of Yes Bank had only recently recovered after the conclusion of its Rs 1,980 crore qualified institutional placement (QIP) last week, which was oversubscribed three times. The QIP will take the private bank's common equity tier-1 capital ratio from 8 percent to 8.6 percent.

The lender has been looking to raise funds to replenish its capital which was hurt by mounting bad loans and an increase in provisions. The QIP will help the bank maintain minimum capital requirements under Basel III norms, experts say, but there is a requirement of further capital growth.

The stock has fallen 60 percent so far in 2019.