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COVID-19 Impact on Banking Sector of India

Author

Listed:
  • Dr. Manohar Das Somani

    (Professor, Department of Commerce, MJB Government P.G. Girls College, Moti Tabela, Indore)

  • Kaushal Kumar

    (Research Scholar, Department of Commerce, Devi Ahilya Vishwavidyalaya, Indore)

Abstract

COVID-19 has created global disruptions to economic activity due to lockdown imposed by the government in effort to slow down the spread of the virus but its consequences for the global economy and financial sector in particular are to a large extent still unpredictable. The study is descriptive in nature and based on secondary data only. This research study aims at to identify the COVID-19 impact on Banking Sector of India and founds that Moody's have changed the outlook of Indian Banking System to Negative, there is rise in Credit Costs and Non-Performing Asset (NPA) of Indian banks, the profitability of Indian banks is continue remain muted, there is deceleration in Credit Growth of banks in India, there is substantial increase in e-banking vested with cybercrime challenges, and the Indian banks are going to have weaken asset quality. These are major areas where Indian banks are getting hurt due to coronavirus outbreak.

Suggested Citation

  • Dr. Manohar Das Somani & Kaushal Kumar, 2020. "COVID-19 Impact on Banking Sector of India," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 15(1), pages 9-14, April.
    • Handle: RePEc:jct:journl:v:15:y:2020:i:1:p:9-14
    as

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    File URL: https://www.jctindia.org/index.php/jct/article/view/a20-mdskk
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    References listed on IDEAS

    as
    1. Krishn A. Goyal & Vijay Joshi, 2012. "Indian Banking Industry: Challenges and Opportunities," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 3(1), pages 18-28, February.
    2. Lagoarde-Segot, Thomas & Leoni, Patrick L., 2013. "Pandemics of the poor and banking stability," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4574-4583.
    3. Goodell, John W., 2020. "COVID-19 and finance: Agendas for future research," Finance Research Letters, Elsevier, vol. 35(C).
    4. Lagoarde-Segot, Thomas & Leoni, Patrick L., 2013. "Pandemics of the poor and banking stability," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4574-4583.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; banking system outlooks; credit growth; Indian banking sector.;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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