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According to Shanti Ekambaram, President of Consumer Banking, Kotak Mahindra Bank Ltd., the banking system in India has ample liquidity and can possible not observe US Banking Crisis. Indian banking sector appears resilient to world market volatility, says Ekambaram. 

Ekambaram acknowledged that the Indian banking sector seems to be largely resistant to the latest market volatility seen within the United States and Europe. In an interview with CNBC, the knowledgeable defined that India’s banking system is structured otherwise from these within the US and Europe, making it much less susceptible to the identical sorts of dangers.

What makes Indian banking much less risky?

Ekambaram then went on to elucidate that Indian banks have largely invested in government bonds, that are topic to caps on how a lot could be held to maturity. This, together with the truth that a lot of the deposits in India are retail and the period of the deposits is comparatively brief, makes Indian banks much less inclined to the form of dangers seen in different nations.

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She added that the Indian banking sector has seen sturdy credit score progress for the previous 18 to 24 months, with banks deploying funds into credit score. This, together with the federal government’s dedication to spending on capital expenditure, is anticipated to spur progress and preserve the sector steady.

Does India stand utterly shielded? 

Ekambaram, nonetheless, did notice that there are some elements that would influence the sector. These elements embody macros and liquidity within the banking system. Thus, she acknowledged that the general outlook for Indian banks stays optimistic. The macro in India is at present in cheap form, and the federal government’s dedication to capital expenditure is anticipated to help progress.

Overall, the top of shopper banking at Kotak believes that the Indian banking sector is trying very completely different from what has been seen taking place within the U.S. and European Union, and is extra resilient to world market volatility.

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Shourya is a fintech fanatic who primarily studies on Cryptocurrency Prices, Union Budget, CBDC, and FTX collapse. Connect along with her at [email protected]

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