We Have No Exposure To SVB, Signature Bank Or Silvergate Capital: Mphasis

IT company Mphasis Limited on Wednesday announced that it has no exposure to Silicon Valley Bank,  Signature Bank or Silvergate Capital, either as a client or as a banker.   

In a statement, Nitin Rakesh, Chief Executive Officer and Managing Director, Mphasis said “We are continuing to focus on servicing our clients in this heightened environment of volatility and transaction volumes. Mphasis has no business with or exposure to Silicon Valley Bank, Signature Bank or Silvergate Capital, either as a client or banker. Our business from US regional banks is a low single digit percentage contribution to the overall revenue.” 

The BFSI segment contributes nearly 30-35 per cent of the total revenue of Indian IT services. Moreover, a large number IT companies in India have many US banks as clients which was a cause of concern as the banking crisis unfolded earlier in March with the collapse of SVB and Signature Bank.

Media reports had suggested that midcap companies including Mphasis and Coforge might get affected by the troubles amongst US banks. This may have prompted Mphasis to come out with a statement. 

It was reported that Mphasis has exposure to First Republic Bank in the US. 

The commentary around US banks suggests that they may be morose on IT spends this year as they double down on their spending, which might affect a lot of midcap Indian tech sector companies.