Impact on Key Stakeholders

The key stakeholders include Employees, Individuals/Retail customers, SME/Corporate

customers and Shareholders & investors.

Mid -Term Disruption Long -Term

Increasing
Rising need Need to build Disruption Loss of trust in
preference new skills to
and structured
for adapt to a
preference for savings
distributed changing
digital instruments
workforce/s business
transactions Flight to safety
hared environment
and growing with preference
services
preference for for big banks
health and life Push of and asset-
Accumulation of insurance backed
shareholders
surplus capital policies instruments
to small/non-
due to limited (e.g., gold)
digital players
deployment
invest capital
opportunities Declaration of insolvency and rampant
Increased loan defaults in inorganic
due to reduced revenue growth lay-offs due to decreased margins
and margins opportunities

Increasing empowerment of local bodies for effective crisis

management of crisis
Indicative structural Call for emergency/drastic measures for economic survival
changes Push for priority sector lending by banks
Further infusion of domestic liquidity
Institution of operating limits for customers for structural
strengthening
Sustained repo rate reduction to near-zero levels
 Impact of COVID 19 on banking sector
• The pandemic has impacted the banking services sector in multiple ways — from business continuity issues
and operational considerations to the overall services outlook. they will likely face short- & long-term
implications on both profitability's as well as in daily service execution. Impacts are:
• Banks have Suspended their services To carry out basic essential transactions directed by government i.e ,
• Only Essential services was available to public like- deposits, withdrawals, clearing of cheques and
government transactions.
• Minimum staff in office banks have maintained only critical staff at branches so banks have temporarily
redeployed staff to manage online or phone enquiries from customers Banks in India have focused
They’ve also deployed mobile ATMs and implemented doorstep banking for senior citizens and other
customers that need additional attention
• Digital banking banks are recommending customers to use mobile and net banking services and only go out
if cash is needed.
• Credit Management: Even with the Indian government’s stimulus packages and Reserve Bank of India’s
(RBI) liquidity measures, banks can expect an increase in loan defaults as borrowers across customer groups
struggle to make payments in the face of an economic crisis resulting from lost business and jobs.  Income
from payments and other fee-based services are hit by a general decline in economic activity crisis
 Impact of COVID 19 on Banking Sector
The pandemic is impacting the banking services sector in multiple ways — from business
continuity issues and operational considerations to the overall services outlook. As banking
services are mobilizing and taking steps to minimize these impacts, they will likely face short-
& long-term implications on both profitability's as well as in daily service execution.

IMPACT