RBI action threatens lenders' short-term funding - analysts

Reuters Market Eye - Financial companies that are dependant on short-term wholesale funding will be most impacted by the RBI's measures to curb liquidity, analysts say.

Among private banks, Barclays highlights Yes Bank and IndusInd Bank as most reliant on short-term wholesale funding, while non-banking financial companies such as IDFC are also vulnerable.

By contrast, Barclays says public sector banks such as State Bank of India have little or no reliance on short-term wholesale funding.

Meanwhile, Credit Suisse downgrades Kotak Mahindra Bank and IndusInd Bank to "underperform" from "neutral", citing their reliance on wholesale funding.

(Reporting by Abhishek Vishnoi)