NEW DELHI: Indian banks‘ Large reliance on native deposits cushions them as international friends are dealing with attainable contagion from the woes emanating from Silicon Valley Bank, in line with Macquarie Group Ltd,
Amid the entire “gloom and doom” in international banks, Indian lenders are outstanding with “hardly any exposure directly or indirectly to SVBMacquarie analyst Suresh Ganapathy wrote in emailed comments on Monday. The sector has “a home deposit funded device with investments in Indian executive 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 much as 0.6% before erasing gains, while the MSCI AC Asia Pacific Financials Index dropped as much as 1.3% to add to Friday’s 2.2% slump.
In a Friday note, Ganapathy retained his bullish outlook for Indian lenders, expecting a “goldilocks situation” for the next two years due to strong asset quality.
“Despite issues of a slowdown in mortgage expansion and margin compression, the income improve cycle continues for the banking sector,” the analyst wrote, raising the sector’s earnings growth estimates by 3%-9% for the years through March 2025.
Jefferies also said SVB Financial Group poses “low attainable possibility” to India, as a subsidiary was sold in 2015 and a rebranded version of that company has “just right credit standing and strong liquidity.”
Analyst Prakhar Sharma echoed his view on Monday, saying the nation’s banks are “well-placed” as greater than 60% of deposits are family financial savings.
Amid the entire “gloom and doom” in international banks, Indian lenders are outstanding with “hardly any exposure directly or indirectly to SVBMacquarie analyst Suresh Ganapathy wrote in emailed comments on Monday. The sector has “a home deposit funded device with investments in Indian executive 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 much as 0.6% before erasing gains, while the MSCI AC Asia Pacific Financials Index dropped as much as 1.3% to add to Friday’s 2.2% slump.
In a Friday note, Ganapathy retained his bullish outlook for Indian lenders, expecting a “goldilocks situation” for the next two years due to strong asset quality.
“Despite issues of a slowdown in mortgage expansion and margin compression, the income improve cycle continues for the banking sector,” the analyst wrote, raising the sector’s earnings growth estimates by 3%-9% for the years through March 2025.
Jefferies also said SVB Financial Group poses “low attainable possibility” to India, as a subsidiary was sold in 2015 and a rebranded version of that company has “just right credit standing and strong liquidity.”
Analyst Prakhar Sharma echoed his view on Monday, saying the nation’s banks are “well-placed” as greater than 60% of deposits are family financial savings.