Mphasis says no business with problematic Silicon Valley, Signature Bank or Silvergate

The company management said it will continue to focus on servicing its clients in this heightened environment of volatility and transaction volumes.

Silicon Valley Bank (SVB), which was a prime funding source for startups, failed on March 10. This was followed by the collapse of Signature Bank on March 12. The collapse of the two banks sent shockwaves across financial systems worldwide.

However, Mphasis has exposure to First Republic Bank, another American commercial bank that was under pressure recently.

Market analysts believe that the SVB episode will be a reason for concern for mid-sized IT companies like Mphasis even if it does not cause any systemic risk. The recent developments might lead to banking clients procrastinating on IT spending decisions, given the capital constraints. The budget cycle of the calendar year 2023 may also be delayed.

Shares of Mphasis are trading 1.08 percent higher at Rs 1,687.20.