Bangalore, Oct 19 (UNI) The sub-prime mortgage crisis which had crippled the industry in the United States (US) will not have any major effect on the Indian IT sector despite mortgage players and investment bankers being its clients, Wipro officials said.
Speaking to newspersons after announcing the financial results for Q2, Wipro CFO Suresh Senapaty said the company's business was not affected much as its clients in mortgage and investment banking formed just one per cent of the revenues from the US.
Expressing similar views, Financial Solutions President Girish Paranjape said while mortgage players were severely hit, investment banks were very well insulated to be badly affected by the crisis.
Fall in real estate values and predatory lending tactics had led to sale of unsuitable mortgages to millions of homeowners and this led to the crisis in the US.
The borrowers found themselves unable to refinance this year because of falling property prices and the default rate zoomed putting hundreds of mortgage companies on the verge of bankruptcy.