The COVID-19 crisis has resulted in significant operational, financial, and human capital risks for the BFSI sector.
Of the headline risks, Banks are facing today – the foremost is around repayment of loans. With the major banks in India showing great resilience through their uninterrupted services and building flexibilities like staggering EMIs, providing moratoriums or waiving fees to consumers and small businesses, it will eventually boil down to their profitability concerns and the credit risk associated with it, unless the regulators and policymakers provide a cushion.
Sustained quarantines and widespread business closure would surely hit credit card and corporate lending businesses among others, while at the same time make public access to certain banking services relatively difficult, especially in tier 2 and 3 cities and rural India.
Another significant challenge links to employee wellbeing, engagement and productivity. With banks being classified as an essential service,…
