Finance, Forex and Investments

Why are Indian Banks being less affected by the crisis?

Bank around the world have been intervened by governments, why are Indian banks so financially healthy? Where can I find articles that address this issue? I would really appreciate if anyone can provide me with links to articles about this.

Public Comments

1. This was the case but is no longer. Initially, Indian banks were almost unaffected because they did not get involved with U.S. mortgage backed securities, etc. mostly because the Indian central bank wouldn't let them. http://www.thehindubusinessline.com/2008/10/15/stories/2008101550530800.htm http://www.business-standard.com/india/news/india-less-vulnerable-to-global-crisis-imf/00/57/350838/ And, as a result, many thought that the recession would not hit India hard. http://in.news.yahoo.com/241/20090306/1264/tbs-no-sign-of-financial-crisis-in-india.html http://news.bbc.co.uk/2/hi/business/7679543.stm and note the difference between the headline and the content of this article: http://www.business-standard.com/india/news/india-less-vulnerable-to-global-crisis-imf/00/57/350838/ But they were wrong: http://www.businessweek.com/globalbiz/content/oct2008/gb2008108_870698.htm http://news.bbc.co.uk/2/hi/south_asia/7749773.stm http://www.france24.com/en/20090227-new-delhi-india-economy-suffers-slowdown-growth-rates-asia-global-downturn http://economictimes.indiatimes.com/Financial-crisis-calls-for-deeper-RBI-rate-cuts/articleshow/4229894.cms http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4781041/Global-financial-crisis-wrecks-Indias-diamond-industry.html so even though the banks weren't hit directly, as the economic troubles continue, the problems of the banks will grow.