India’s macro stability won’t be affected by bank crisis, official tells ET

Mumbai (Reuters) – India’s macroeconomic stability will not be affected by the collapse of Credit Suisse (CSGN.S) and two U.S. lenders, the country’s economic affairs secretary told The Economic Times.

Global capital flows might be adversely affected in the event of the crisis getting more pronounced, Ajay Seth told the newspaper in an interview.

“India’s macroeconomic fundamentals remain strong and the country is on a sound footing to absorb any external shocks,” Seth said.

On Sunday, some of the world’s largest central banks came together to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG (UBSG.S) to buy rival Credit Suisse Group AG (CSGN.S) in a historic deal.

India’s deputy IT minister said last week he had suggested that domestic banks lend more to start-ups in light of the collapse of Silicon Valley Bank.