The Banking, Financial Services, and Insurance sector represents a major portion of the multi-billion dollar Indian economy comprising of all Banking, Insurance, and Non-Banking Financial Institutions. India being in the top 10 countries that is impacted by the current global pandemic, has had the most adverse impact on the Indian BFSI sector. The great pandemic led to the situation of a very destructive economic loss exceeding the losses of the Great Depression of the 1930s. The world went through a pause in terms of execution for most of the sectors. Under the Emergency Credit Line Guarantee Scheme (ECLGS), banks have sanctioned loans worth Rs 2.05 lakh crore to 81 lakh MSMEs that were impacted by disruptions caused due to the pandemic.
However, together, we have all managed to push the challenges and convert them into opportunities with innovation, technology and the spirit to never stop that kept it all moving forward. With reference to IBEF, as per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and well-regulated. The financial and economic conditions in the country are far superior to any other country in the world. Credit, market and liquidity risk studies suggest that Indian banks are generally resilient and have withstood the global downturn well.