An Indian Viewpoint Of Impact Of Covid-19 On Banking Sector.

The business sector's finances have already begun to suffer as a result of decreased production and lockdowns, which have already begun to take their toll. In order to keep operations running smoothly, a significant public budget or stimulus is required to address issues such as interruptions in supply chains, difficulties in manufacturing, and paralyzed health systems. The banking and financial industry, whose prospects are related closely to those of the economy, is sure to face the brunt of the anticipated slowdown in economic development. The International Monetary Fund has reduced India's GDP growth prediction to 1.9 percent for 2020-21. There is a possibility of an increase in defaulted loans. "The downturn might potentially lead to job losses, which could put on on the retail lending books of financial institutions. The loss of revenue from tourism and the entertainment industries, amongst many other areas of business, has already damaged the economy. These and other such factors are all building up to put a burden on the economy of the whole world, which may potentially have ramifications for the next few years. The governments, central banks, and regulatory bodies in the Asia- Pacific region have each implemented their own unique set of countermeasures in response to COVID-19. These include the infusion of additional cash, loans directed at damaged companies and areas, and reductions in the policy interest rate. Additionally, it involves assistance for financial institutions in their provision of forbearance to economically viable people and companies that were negatively impacted by COVID-19. [ABSTRACT FROM AUTHOR]