Mphasis shares climbed in early trading on March 29 after the company clarified that it had no exposure to the three US banks that have recently failed.

“Mphasis has no business dealings or contacts with Silicon Valley Bank, Signature Bank or Silvergate Capital, either as a client or as a banker. Our business from US regional banks contributed single-digit to total revenue,” Mphasis CEO and MD Nitin Rakesh confirmed in an exchange filing.

Following the collapse of the three major US banks, there are concerns that other bank clients may also adjust their IT spending, which could adversely impact the revenues of Indian IT players. Mid-sized firms such as Mphasis, which do business with smaller US banks, are expected to be particularly affected by these cost-cutting measures.

Management’s clarification eased investor concerns, leading the stock to react positively. Shares of Mphasis were trading at Rs 1,691.10 on the NSE at 10:10 am, up 1.31%. The stock also hit an intraday high of Rs 1,711.75.

In addition to the clarification, a block trade involving 648,000 shares, or 0.35% of the company, took place on the exchange today.

About 6.48 lakh shares changed hands at an average price of Rs 1,686.52 each, bringing the total transaction value to Rs 109.39 crore.