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    Banking Crisis: Crisis on TCS and Infosys after Adani Group! America’s regional banks have the highest exposure

    Shehnaz AliBy Shehnaz AliMarch 17, 2023Updated:March 17, 2023No Comments2 Mins Read
    New Delhi: The Indian stock market has not yet fully recovered from the crisis of Adani Group that another trouble has knocked at the door. The banking crisis that started from America has reached Europe. It is believed that it may deepen further. Meanwhile, analysts at JP Morgan (JPMorgan) say that among the US banks facing financial crisis, the highest exposure is of India’s two big IT companies TCS (TCS) and Infosys (Infosys). Regional banks in the US account for 2-3 per cent of their total revenue. TCS, Infosys and Mindtree may have an exposure of 10-20 basis points to the recently sunken Silicon Valley Bank. Tata Group company TCS has the highest exposure in this.

    According to a Reuters report, JP Morgan said in a note that these three companies may have to make provisions for their exposure to Silicon Valley Bank. It added that the collapse of SVB and Signature Bank and liquidity concerns in the US and Europe could lead to banks reducing their tech budgets in the short term. The country’s IT industry is already facing challenges from the macroeconomic environment in Europe and the US. Demand has come down due to the pandemic. For this reason, companies are reducing the expenditure on technology. The banking crisis could make the situation worse. Due to this, the revenue of IT companies may be affected in the next few quarters.

    Tata Group: Big news from TCS after the market closed, CEO resigns from the company

    Who gets the most revenue

    The highest revenue of Indian IT companies comes from the Banking, Financial Services and Insurance (BFSI) sector. Their exposure to this sector is, on an average, 62 per cent in US banks and 23 per cent in Europe. Mindtree had recently said that it has marginal exposure to US banks, including SVB. TCS is the country’s largest IT company and the second largest company by market cap after Mukesh Ambani’s Reliance Industries. Shares of TCS closed at Rs 3178.95, down 0.18 per cent on Friday. Infosys, on the other hand, gained 10.4 per cent to Rs 1,420.85.

    Source: navbharattimes.indiatimes.com

    : Language Inputs

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    Banking crisis news Business News Samachar Headlines Indian IT sector update Infosys exposure in US regional banks infosys share price Latest News news news in hindi silicon valley bank crisis Tata Group News TCS exposure in US banks tcs share price US banking crisis
    Shehnaz Ali
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    Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.

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