SVB: Indian banks stand out amid 'global gloom and doom', says Macquarie

"Despite concerns of a slowdown in loan growth and margin compression, the earnings upgrade cycle continues for the banking sector," the analyst wrote

Indian banks’ large reliance on local deposits cushions them as global peers are facing potential contagion from the woes emanating from Silicon Valley Bank, according to Macquarie Group Ltd.
 

Amid all the “gloom and doom” in global banks, Indian lenders are distinguished with “hardly any exposure directly or indirectly to SVB,” Macquarie analyst Suresh Ganapathy wrote in emailed comments on Monday. The sector has “a domestic deposit funded system with investments in Indian government securities,” he wrote.

Financial companies in India outperformed regional peers Monday as Jefferies Financial Group Inc. echoed Macquarie’s outlook. The nation’s banking sector gauge rose as