Slow revenue growth of top four US banks likely to affect Indian IT firms

According to the HSBC report, top line growth of the top four US banks fell to around 2 per cent in the second quarter ended June this year, as compared to around 5 per cent in the previous year

With the top four US banks — Citi, Bank of America, JPMorgan Chase and Goldman Sachs — losing steam in revenue growth, Indian IT players are likely to face the heat in the key banking, financial services and insurance (BFSI) vertical.

Factors such as the trade war between the US and China, and the fear of global slowdown, are making banks defer their tech spending — a decision that has already started adversely impacting top line growth from this vertical, said industry experts.

“We see cyclical headwinds from a temporary pause in tech spending from banks as they grapple with trade tensions