Covid-19 pandemic: Omicron spread may disrupt growth momentum, says IBA

Impact may not be severe as first, second waves

The resurgence in the Covid cases caused by the Omicron variant may create some disruptions to the growth momentum. 

However, its impact is not expected to be as severe as that in the first and second waves, according to the Indian Banks’ Association (IBA). 

A K Goel, chairman of IBA, said 2021 played out to be much better than expected for the banking sector. Stable asset quality supported by gradual improvement in the job market and better corporate balance sheet helped the sector put up affable performance.  

Goel, who is set to become managing director and chief executive of Punjab National Bank this month, penned thoughts in the industry lobby group's monthly newsletter for January 2022.  

He said banks were able to show good profit numbers and also see the credit uptick in various sectors.