Silicon Valley Bank crisis unlikely to affect Indian banks, say analysts

Have exposure to bigger banks only, not small ones: SBI chairman Khara

The recent run on the US-based Silicon Valley Bank (SVB) and the subsequent seizure of its assets by the regulators may have sparked a global wave of risk aversion, particularly for start-ups.

However, the Indian banking sector is unlikely to be a victim of any contagion effects, said analysts.

The bank, which played a big role in financing start-ups and technology players, faced stress after incurring huge losses on its holdings of US bonds, following the most-aggressive monetary tightening cycle by the Federal Reserve in around four decades.

From a domestic point of view, Indian banks have minimal exposure to