Banking Crisis: Crisis on TCS and Infosys after Adani Group! US regional banks have highest exposure – tcs, infosys have highest exposure to US regional banks says jpmorgan
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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.
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.
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