The Reserve Bank of India (RBI) is monitoring developments related to Credit Suisse, though the Swiss lender’s limited size and scope in the country means that any major impact is unlikely, said people familiar with the matter. Local bond traders said the risk of contagion is negligible. Bankers said Credit Suisse India will have enough capital.
With a single branch in India, Credit Suisse has a 1.5% share among foreign banks in India. Its share of banking assets is at 0.1%. About 70% of the bank’s assets in India are in short-term government securities. “Banks in India have already downgraded Credit Suisse in their internal ratings so fresh trading positions with them is now unlikely,” said the chief government bond trader at a large private sector bank.