While the Reserve Bank of India kept policy rates and its accommodative stance unchanged, additional monetary measures have been brought in to fight the second wave of Covid-19.
The recent surge in Covid-19 infections, the central bank says, adds uncertainty to the outlook on domestic growth as restrictions could dampen demand improvement and delay the return of normalcy.
The Covid-19 disruption has ignited a new era of value-based customer-centric banking. It has also given rise to platform and data-driven approaches, signalling a radical change in retail banking.
While Indian banks' improved financial metrics do not fully reflect the impact of the Covid-19 pandemic, the under–capitalised PSBs are likely to remain risk averse and lose market share.
According to a Capgemini Research Institute survey, while the pandemic propelled digital adoption, physical channels continue to remain significant for financial services consumers.
In a chat with Fortune India, Radhika Gupta, MD and CEO of Edelweiss Asset Management, talks about how the fallout of the the Covid-19 pandemic can be used in a positive manner, among other things.
Gold exchange traded funds added a record 877 tonnes during 2020, nearly 231 tonnes more than the 2009 record of 646 tonnes. Experts argue much of gold's growth drivers will continue in 2021 too.
According to the RBI, the gross NPA ratio of all scheduled commercial banks may increase from 7.5% in September 2020 to 13.5% by September 2021, and even escalate to 14.8% in severe stress scenario.
