Abstract
In this paper we study the impact of the Covid-19 pandemic on the financial sector of the Indian economy, specifically on the banking sector, the non-banking finance companies (NBFCs) and the bond market, for the period March 2020 to March 2022. In order to set the context, we first summarise the conditions of the financial sector in the pre-pandemic period. We highlight the long-term structural trends and their underlying drivers that were conspicuous in this sector even before the pandemic. These issues have direct consequences for the manner in which the pandemic impacted the financial sector which is what we discuss next. Finally, we describe the way forward for the Indian credit landscape in terms of the major opportunities and challenges.
This paper has also been published as an IGIDR Working Paper (WP-2022-019) and is used here with permission.
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Notes
- 1.
i.e. 2010–11 to 2021–22 with each financial year (FY) ending on March 31 and starting on April 1. We discuss in terms of financial years throughout the paper.
- 2.
In this paper by “credit” we mean commercial or non-government credit.
- 3.
All years are financial years starting on April 1 and ending on March 31.
- 4.
Here we primarily mean scheduled commercial banks; the shares of other banks such as co-operative banks, regional rural banks, small finance banks, etc. are very small.
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Sengupta, R., Vardhan, H. (2023). India’s Credit Landscape in a Post-pandemic World. In: Gupta, I., Das, M. (eds) Contextualizing the COVID Pandemic in India. India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-99-4906-9_13
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DOI: https://doi.org/10.1007/978-981-99-4906-9_13
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