ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Banking SectorSubscribe to Banking Sector

COVID-19 and Bank Behaviour

The article analyses the impact of the pandemic on the banking sector in India. Utilising data on Indian banks, it addresses two questions: fi rst, what was the magnitude of the impact on bank lending across ownership? Second, what was the impact on their costs and returns? This article is one of the early exercises to examine the impact on banks’ balance sheets in the Indian context.

Impact of COVID-19 on the Indian Banking Sector

This article investigates the impact of COVID-19 on the banking sector through the trend analysis of return on assets and return on equity of the scheduled commercial banks. It covers both the pre- and post-lockdown periods. The results suggest that the governmental measures are helping ameliorate situations of bad quality loans and will improve future prospects of the banking industry.

Banking Sector Resilient in the Face of Pandemic

Contrary to several gloomy forecasts, the Indian banking sector has been surprisingly resilient in the face of the pandemic. This is because corporates, which account more than half the loans, are in better shape and banks are well-capitalised. This bodes well for loan growth and bank performance post the pandemic.

 

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