10 Big Questions For 2021
Forbes India|January 15, 2021
The Covid-19 crisis wreaked havoc on the economy. Will the New Year herald a much-needed recovery?
Salil Panchal
10 Big Questions For 2021

1. Will retail loans go sour?

Quite likely, yes. And the unpleasant numbers will show up in January and April 2021, when banks start to disclose asset quality through their quarterly earnings data. Even as much confusion prevails on whether banks will be granted more time to restructure loans—considering that the Supreme Court is hearing matters relating to waiver of interest—most have resorted to upfront provisioning, fearing deteriorating asset quality in the months gone by. But restructuring the loans will not solve the problems for banks, it will only delay them.

Rather than large corporate loans, the pain point for banks is likely to come from unsecured loans, particularly personal loans, education loans, credit card debt or a small vehicle loan. Individuals who have seen job losses or salary cuts or small businesses where revenues have come to a grind have struggled to repay loans.

Between April and October 2020, the bounce rate on auto-debit transactions has been high at an average of 40.4 percent in volume terms and 33.5 percent in value terms, compared to year-earlier levels of 29 percent and 23 percent respectively, for the same period. This was on transactions through the National Automated Clearing House (NACH).

Most bankers fear the worst for the retail loans segment. “The meter is running on the retail side. For the industry, overall slippages are bound to increase,” says Amitabh Chaudhry, managing director and CEO of Axis Bank. These non-performing assets (NPAs) will be higher than what the financial system has seen in the recent six to seven years.

この記事は Forbes India の January 15, 2021 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Forbes India の January 15, 2021 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

FORBES INDIAのその他の記事すべて表示
Home-Cooked Meal Is Now Greatly Valued
Forbes India

Home-Cooked Meal Is Now Greatly Valued

The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients

time-read
8 分  |
May 21, 2021
Paytm 3.0 - Reaching Near Breakeven In Two Years
Forbes India

Paytm 3.0 - Reaching Near Breakeven In Two Years

As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years

time-read
10+ 分  |
June 4, 2021
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Forbes India

THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN

Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse

time-read
8 分  |
May 21, 2021
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Forbes India

LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE

Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment

time-read
7 分  |
May 21, 2021
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Forbes India

PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST

Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground

time-read
9 分  |
May 21, 2021
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
Forbes India

INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR

While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term

time-read
8 分  |
May 21, 2021
DIGITALISATION WILL HELP IN VALUE CREATION
Forbes India

DIGITALISATION WILL HELP IN VALUE CREATION

As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India

time-read
8 分  |
May 21, 2021
Industry 4.0: Climate Revolution?
Forbes India

Industry 4.0: Climate Revolution?

Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent

time-read
10 分  |
June 4, 2021
EV Dream Still Miles Away
Forbes India

EV Dream Still Miles Away

Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure

time-read
6 分  |
June 4, 2021
Living Waters
Forbes India

Living Waters

A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet

time-read
4 分  |
June 4, 2021