Banks have been breathing sighs of relief, with their worst fears about the pandemic not coming to pass, allowing them to release money that had been put aside in case of higher loan defaults. The question for investors is: where does the sector go from here?
While numbers will be distorted by government measures to alleviate the pandemic, we can begin to see a way ahead. India is a reminder that it is too early to assume the worst is over and next winter will be a critical test of Covid-19’s resistance to vaccines. Banks have a vital role to play in the economic recovery, which will see closures and start-ups, bad debts and good loans. As such, they will be a key way for
