Impact of eurozone crisis on banks may be limited: govt

The Reserve Bank of India (RBI) has informed the central government that the impact of eurozone crisis on the Indian banks may be limited.

As per the Financial Stability Report (FSR) of RBI, the first order impact of the eurozone crisis may be limited as there is no presence of Indian banks in Portugal, Italy, Greece and Spain, Minister of State for Finance Namo Narain Meena has said in a written reply to the Lok Sabha.

“Secondly, none of the Indian banks has any exposure to bonds issued by Portugal, Greece and Spain, while exposure to Italian bonds is negligible,” he said.

He also said that the funding dependence of overseas branches of Indian banks on European entities, except for the UK, is also not very significant.

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