In India, credit suisse has assets of over 20,000 crore rupees. Do you need to worry?

NEW DELHI: Struggling Credit Suisse, the 12th largest foreign bank in India with assets of Rs 20,700 crore, is battling to rebuild market trust after its stock fell 31% on Wednesday due to concerns about its financial health.

Credit Suisse is not viewed as a direct threat in India, even in the worst-case scenario of an SVB-like collapse, given it only holds 0.1% of the assets in the Indian banking system.

According to a Jefferies report, the Swiss banking giant is active in the derivatives market and finances 60% of its assets via borrowings, 96% of which have terms of up to two months.

Analysts predict gentler modifications in the evaluation of counterparty risks, notably in the derivative market, given the significance of Credit Suisse to India's banking industry.

"We anticipate RBI to closely monitor liquidity concerns, counterparty risks, and take appropriate action as needed. Also, this might cause institutional deposits to shift in favour of bigger, higher-quality banks "analysts Prakhar Sharma and Vinayak Agarwal for Jefferies.