You are here: Home » Finance » News » Banks
Anup Bagchi to take over as MD & CEO of ICICI Pru Life Insurance in June
Business Standard

Softer impact of Credit Suisse crisis likely on Indian banks: Jefferies

Credit Suisse has a 1.5% share among foreign banks' assets in India and a 'small' 0.1% share of overall banking assets in the country, Jefferies estimated

Credit Suisse | Indian banking system | Jefferies


Credit Suisse
Credit Suisse (Photo: Bloomberg)

India's banking sector will likely have a softer impact from the troubles at Credit Suisse, given the Swiss lender's relatively small presence in the country, equity analysts at said on Thursday.

has a 1.5% share among foreign banks' assets in India and a 'small' 0.1% share of overall banking assets in the country, estimated. It has only 1 branch in India and total assets of over 200 billion rupees ($2.42 billion), it said.

"Given the relevance of to India's banking sector, we see softer adjustments in assessment of counter-party risks, especially in the derivative market," analysts Prakhar Sharma and Vinayak Agarwal said in a note.

Earlier in the day, said it would borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence after a slump in its shares intensified fears about a global banking crisis.

Credit Suisse, Switzerland's second-biggest bank, is the first major global bank to be given an emergency lifeline since the 2008 financial crisis and its problems have raised serious doubts over whether central will be able to sustain their fight against inflation with aggressive interest rate hikes.

Those fears have roiled financial markets globally as well as in India.

said it would watch out for liquidity issues and any rub-off on counter-party risk assessment on Indian banks, especially in derivatives.

The brokerage expects the Reserve Bank of India to keep a close watch on liquidity issues and counter-party exposures, and intervene if necessary.

This may also lead to institutional deposits moving more towards larger or quality banks, Jefferies said. ($1 = 82.6530 Indian rupees)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Thu, March 16 2023. 14:53 IST