Letter to BS: Banks must redefine strategy amid Covid-19 pandemic

The recent results of almost all banks show a decline in profit, or losses. This is even before the full impact of Covid-19 is captured. Many borrowers must have been affected ad­versely by the lockdown and it is li­kely that the non-performing assets may go up if the government does not announce any special restructuring scheme. Further the banks have been affected due to the drop in their non-interest income, resulting in muted top-line growth. But the good news is that the banks are able to raise fresh capital. Un­for­tu­nately, part of the new capital will be used for cleaning