An Analytical Study of Covid-19 Impact on Indian Banking Industry

Author: Mittal, A.K.

Abstract:
The destruction created by the global COVID-19pandemic; has fallen the worlds economic indicators. Whether it is a developing nation, underdeveloped nation, or the worlds most powerful economy, for that matter, no country escaped safely from its impact. All industries have been hit adversely due to the COVID-19 pandemic. It has created a bad situation in the market. The banking industry has also not been spared from being affected by this. The outbreak of COVID-19 has challenged the Indian banking industry adversely. Indian Banks informed rise in NPAs, demand of Loan and in turn, impacted profitability. Because of the nation-wise lockdown, industries and markets were shutdown. There were no sources of Income and increasing expenses. Therefore, the Public was demanding loans, and alternatively, they were not capable of repaying the loan. So, a liquidity crisis arose. To overcome this COVID19 pandemic situation, Indias apex body bank Reserve Bank of India, and Central Government have taken several steps to provide relief. This research paper intends to analyze the relationship between NPAs, Advances, and Profitability due to COVID-19 and the effect of steps taken by RBI and the government on the Indian Banking Industry. For this purpose, we have an analytical study of Public and Private banks. Out of these two public banks, Bank of Baroda, Punjab National Bank, and two private banks, ICICI Bank, HDFC Bank for consecutive six previous years. The data were analyzed using statistical tools to examine the impact of NPAs and net advances during COVID-19. It also analyzes the impact of the banks profitability.

Keywords: Non-Performing Assets (NPAs), Economy, Reserve Bank of India (RBI), Covid-19.

DOI:

International Journal of Trade & Commerce (Vol: 10 Issue:2)