Volume : IX, Issue : VI, June - 2020

A Study on Impact of COVID-19 on Banking Sector: An Indian Perspective

Dr. Chanduji P. Thakor

Abstract :

Decreased productivity and lockdowns have already started to take a toll on the financials of the corporate sector. Supply chain disruptions, manufacturing hindrances and crippled health systems need a hefty public fund/stimulus to continue operations smoothly. With economic growth poised to slow down — the International Monetary Fund has cut India’s GDP growth estimate to 1.9 per cent for 2020–21 — the banking and financial sector, whose prospects are tied closely to the economy’s, is bound to bear the unt. There could be a spike in bad loans. “The slowdown could lead to potential job losses, which could cause stress in banks’ retail loan books. Income from tourism, entertainment sectors among many others has already crippled the economic situation. Factors like these are all adding up to strain the global economy which might also have its repercussions in the year ahead. Asia–Pacific governments, central banks, and supervisory authorities have rolled out diverse measures to address COVID–19. These include liquidity injections, targeted loans to affected industries and regions, and policy rate cuts. It also includes support for banks to provide forbearance to otherwise economically viable households and businesses sideswiped by COVID–19.

Article: Download PDF    DOI : https://www.doi.org/10.36106/paripex  

Cite This Article:

A STUDY ON IMPACT OF COVID-19 ON BANKING SECTOR: AN INDIAN PERSPECTIVE, Dr. CHANDUJI P. THAKOR PARIPEX-INDIAN JOURNAL OF RESEARCH : Volume-9 | Issue-6 | June-2020

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