Indian Banks Hardly Exposed To SVB Crisis: Macquarie

Indian lenders have hardly any exposure directly or indirectly to Silicon Valley Bank collapse due to their reliance on local deposits which cushions them even when the international banks face potential contagion from the woes emanating from the US bank collapse, Macquarie analyst Suresh Ganapathy wrote in emailed comments on Monday.

Amid all the 'gloom and doom' in international banks, Indian banks have a domestic deposit funded system with the government securities, Macquarie analyst said. 

Indian financial companies surpassed regional counterparts on Monday as Jefferies Financial Group Inc. echoed Macquarie's viewpoint. 

India's banking sector gauge jumped up to 0.6 per cent, while the MSCI AC Asia Pacific Financials Index fell to 1.3 per cent compared to Friday's 2.2 per cent slump. 

The analyst further being bullish about the Indian banks for the coming two years due to solid asset quality forecasting a 'goldilocks scenario' in his Friday note. 

Analyst Prakhar Sharma also said on Monday that India's banks are 'well-placed' as over 60 per cent of deposits are household savings.