In the panic of the global financial crisis of 2007-09, many depositors in India moved their deposits from private banks to the largest and government owed bank, State Bank of India (SBI). This created need for firms not borrowing from SBI to start a relationship with it. I find that firms that...

Government Owned Banks (GOBs) have other explicit or implicit objectives apart from profit maximization. In this paper, I study whether this affects the liquidation risk of firms borrowing from GOBs. Using the natural experiment of securitization reform in India that increased firms' liquidation...

We study the evolution of firms' leverage around systemic banking crises. Using a sample of 40 recent systemic banking crises, we find that firms' leverage is procyclical around banking crises, similar to the evolution of aggregate credit around financial crises documented in the literature. In...

Using Facebook's social network data for the US counties, we examine whether social connectedness reduces the informational disadvantage in lending to small businesses at a distance. We find that for a given distance, there is a pecking order of lending. Banks first lend to more socially...