How banks were able to prove doomsday predictions wrong in a pandemic year

There were five factors that helped banks contain bad loans in a pandemic year

When the Coronavirus (Covid-19) pandemic broke out in March last year and a nationwide lockdown was imposed to restrict its spread, there were concerns all round over its impact on the banking sector. Bad loans were stabilising after a relentless rise for several years and there was a ray of hope for the banking sector after a long time with non-performing assets having crossed the hump. Then the Covid-19 pandemic broke out crippling economic activity due to the lockdown and fears of asset quality problems resurfaced.

The Reserve Bank of India (RBI) too, raised a red flag about possible ballooning