Second Covid-19 wave and lockdown lesser disruptors for banking sector

Valuations may not correct much here on as Street factors for less than 10 per cent growth for FY22

Fresh lockdowns are being imposed in parts of the country because of the second wave of the Covid-19 pandemic. However, it may be less painful for bankers this time around.

For one, a significant part of operations has been recalibrated and bankers too have embraced new ideas such as faceless customer interactions and work from home to ensure seamless workflow. On the business front, with the fear of elevated bad loans gradually easing and moratorium not being very detrimental as envisaged, the banking sector is bracing for some normalcy in FY22. Analysts are factoring in 10-12 per cent loan growth in