India’s public sector banks warming to CSAs

Bankruptcy law reform could prompt a shift in attitude at State Bank of India

state-bank-of-india-mumbai
Welcome precedent: if the SBI signs CSAs, there will be pressure on other public banks to follow

India's state-owned banks could be on the verge of signing credit support annexes (CSAs) with some of their counterparties, following a push by the government to rewrite the country's bankruptcy laws, according to market sources.

"Last year none of the public sector banks were really considering CSAs, but this year I see a definite shift," says Mumbai-based MS Gopikrishnan, head of foreign exchange, rates and credit trading for south Asia at Standard Chartered. 

Under the Basel framework, over-t

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: