Economic Update:

  • RBI, in its April 2023 policy meeting, opted to maintain the status quo on repo rates at 6.5%.
  • Retail inflation eased to an 18-month low of 4.7% in April from 5.66% in the preceding month. Inflation numbers were in line with the expectation and benefitted with a favorable base effect.
  • Favorable base effect is due to Russia-Ukraine crisis which started affecting prices in last April.
  • Food and beverage inflation also softened at 4.22% in April due to above average rainfall in April which kept vegetable prices in control.
  • Softening inflation should reflect favorably on the decision of RBI in the next MPC meeting, which again may hold the rates.
  • The International Monetary Fund (IMF) expects India to grow by 5.9% by FY24 and by an average rate of 6.1% over the next five years.


Global Banking Crisis:


  • First Republic’s demise marked the third bank failure in 2023, along with Silicon Valley Bank and Signature Bank.
  • JPMorgan Chase acquired the substantial majority of assets and assumed the deposits of First Republic for $10.6 billion.

First Republic

  • In 2020, San Francisco based First Republic became the 14th largest U.S. bank with an enterprise value of $19 billion.
  • First Republic operated 93 offices in 11 states, primarily in New York, California, Massachusetts, and Florida.

Reasons for Collapse

  • First Republic’s failure was due to a run on deposits following the collapse of Silicon Valley Bank and Signature Bank.


Status of Crisis

  • Banking Crisis started in March 2023, with the collapse of SVB, Signature Bank, and takeover of Credit Suisse.
  • In total, the failed banks had combined $548.5 billion in assets, more than the total assets for all the failed banks in 2008.
  • As of now, Fed is expected to halt the rise in interest rates leading to less likelihood of further crisis in the banking system.


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This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.

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