India's macro stability won't be affected by bank crisis

India's macroeconomic stability will not be affected by the collapse of Credit Suisse and two US 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.

Also Read: Credit Suisse’s 9,000 job cuts a foretaste of UBS takeover

"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 to buy rival Credit Suisse Group AG 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.