India is Ready For European Financial Slump

IMF officials say Indian banks are well insulated from the European fiasco

India's banks, a favorite of international investors, are probably insulated from the fall out ongoing in the European banking sector, the International Monetary Fund said Tuesday.

"India and Malaysia appear insulated from foreign banks by almost all indicators when compared with all peer groups, except developing Asia and the economies that make up the BRIC group," the IMF said in a report released today. "Australia, Canada, India, and Malaysia have a relatively low degree of exposure to international banking and also avoided the worst of the effects of the global financial crisis," according to the IMF.