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US banking turmoil hits the prices of ADRs for domestic banks, shows data

Analysts say domestic banks' dependence on local depositors insulates them from the crisis

Bank, money, Banks
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Samie Modak
The US banking turmoil has impacted the prices of American Depository Receipts (ADRs) for domestic banks.

In the case of HDFC Bank, the ADR premium has shrunk by nearly 5 percentage points, from 16.5 per cent during the start of the month to less than 12 per cent, at present.

Meanwhile, the discount in case of Axis Bank, State Bank of India (SBI) and ICICI Bank has widened. For instance, ICICI Bank ADRs were available about a per cent cheaper compared to its domestically listed shares. Now the discount has widened to more than 2 per cent.

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First Published: Mar 16 2023 | 6:10 PM IST

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