Shortly after Silicon Valley Bank (SVB) failure, the Reserve Bank of India (RBI) acted to determine the impact on Indian Banks and NBFCs. As per a report by the Business Standard, RBI is collecting data from banks on equity exposure to SVB and deposits that banks had.
The regulator is also gathering data to identify any potential similar risks that Indian non-bank companies are exposed to.
This comes amid worries that Indian banks and NBFCs could be vulnerable given the equity investments and deposits in Silicon Valley Bank.
The Federal Deposit Insurance Corporation was subsequently named as SVB's receiver after California's Department of Financial Protection and Innovation closed the 16th-largest bank in the US, on Friday.
According to bankers, the exposure of Indian companies to the defunct US lender is insignificant and shouldn't raise any red flags. In recent years, the liquidity and capital positions of Indian banks have stayed strong.