Latest round of Covid restrictions has lenders fretting over rising defaults
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Yesterday, Maharashtra, which has seen a resurgence of infections, announced a weekend lockdown starting 8 pm of Fridays to 7 am on Mondays and also extended the night curfew until further orders.
Agencies
However, the presence of a vaccine and last years experience of the lockdown along with government support to sectors hit due to Covid could cushion the impact this year unlike last year.
Indian banks are fretting over another spike in defaults as tighter restrictions in Maharashtra, the largest state in terms of GDP contribution, along with rising cases across the country has brought credit quality challenges due to Covid-19 back to the fore.