Amidst the crisis on American and European banks after the collapse of Silicon Valley Bank, analysts say that the upheaval in the global financial markets will have no effect on Indian banks.
These comments from analysts have come at a time when three banks have sunk in western countries and regulators have taken tough decisions to save one bank. In view of this banking crisis, last week RBI Governor Shaktikanta Das had said that the Indian banking system is stable and strong.
According to the news Reuters report, analysts say that the number of bad loans in the Indian banking system has decreased rapidly in the last few years and capital is also present in sufficient quantity. Due to this, the upheaval in the global banking system will not affect India.
It has been said in the report that after the crisis in the private sector Yes Bank, there has been a big change in the Indian banking system. Bad loans have been liquidated, while banks have raised capital.According to RBI, the CRAR of any bank should be at least 9 percent. It was 16 per cent by the end of the September quarter.