Indian banks are not affected by the collapse of American banks

Indian banks will not be affected by the bankruptcy of two big US banks. American investment company Jefferies and financial services firm Macquarie have expressed such confidence. They say that Indian banks are in a strong position due to reliance on local deposits, investment in government bonds and adequate cash.
For a few months, Indian banks have been performing better than foreign banks. According to Jefferies, most Indian banks have invested only 22-28% in securities. Government bonds account for 80% of the securities investment of banks. Most of the banks keep 72-78% of these till maturity. This means that the fall in their prices will not affect this investment.
Jefferies says most banks in India have passed its Silicon Valley Bank (SVB) test. Under this, along with the deposit quality of banks, the effect of mark-to-market losses on the bonds deposited in banks till maturity was also assessed. Accordingly, Indian banks have high-quality deposits with long shelf life. Also, their dependence on bonds is less.
In the global financial crisis of 2008-09, BSE's Bankex crashed 72%. But by 2010, it had climbed 4 times to reach 15,108 in just 18 months. In comparison, Bankex has lost only 5% in the last two days, while the shares of American banks fell by 70%. Shares of banks fell marginally on Tuesday. Shares of ICICI Bank, Axis Bank and IndusInd Bank rose up to 0.39%.