call for blind adherence to Basel III and persist with its (Reserve Bank of India) asset-level leverage restrictions and …

We study a bank run in India in which private bank branches experience sudden and considerable loss of deposits that … seek safety in state-owned public sector banks (PSBs). We trace the consequences of this reallocation using granular data … on bank-firm relationships and branch balance sheets. The flight to safety is not a flight to quality. Lending shrinks …