Volume 18, No. 6, 2021
IMPACT OF COVID-19 ON FINANCIAL PERFORMANCE OF BANKING SECTOR IN INDIA (WITH SPECIAL REFERENCE TO NPA)
Dr. R. K. Tailor , Ms. Nidhi Sharma
Abstract
COVID-19 pandemic was one of the most severe issue faced by Indian economy which, has an adverse effect on the business of banks. COVID-19 can be anticipated as a black swan occasion for the overall monetary framework. India recorded the primary occurrence of the sickness on January 30, 2020. As COVID-19(corona virus) is an unprecedented event which badly impact our economy vis-a-vis the financial performance of banking sector. Disruptions of economic activity due to corona virus has resulted slowdown in India’s economic growth. During the nationwide lockdown in India, banking sector is declared as an emergency service, because banks are main wheel of economy. Due to coronavirus people are unable to maintain their financial situation as it is affecting business activities of banks (as less investment, less loan disbursement, less deposits, unpaid installment of loans) which is becoming difficult for banks to maintain their financial position. Increase in NPA and declines in revenue will impact bank’s profitability, which will lead to a deterioration of capitalization along with banks assets quality. Corona virus has an adverse impact on the asset quality of banks which, is one of the most important indicators of their financial health. The objective of this paper is to reveal the impact of COVID-19 on financial performance of banking sector.
Pages: 7290-7310
Keywords: COVID-19, banking sector, lockdown, capitalization, profitability, revenue.