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AN IN-DEPTH STUDY ON IMPACT OF COVID 19 ON NON- PERFORMING ASSETS OF BANKING SECTOR

Preeti Rani

Page No. : 61-65

ABSTRACT

The financial sector plays a significant role in the economy, and Indian banks dominate the financial system. However, the Indian economy had a slowdown in 2019-2020, and the outbreak of pandemic coronavirus exacerbated the crisis. Furthermore, where credit growth is the key driver of economic growth, bad loans are the destroyer of the economy because they reduce the capacity for credit lending. The Indian banking sector has been experiencing an increase in non-performing loans over the past few years, and covid 19 exacerbates the problem. The purpose of this article is to comprehend the influence of Covid-19 on Non-Performing Assets (NPAs). Secondary data for the study comes from the Financial Stability Report (FSR) of the Reserve Bank of India (RBI) and several newspapers, including Financial Express and Business Today.

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