Economic impact of second covid wave to hit lenders: Fitch Ratings

The latest wave of covid-19 infections could delay India’s economic recovery and add to the risk among financial institutions, ratings agency Fitch Ratings Inc. said in an analysis.

Fitch Ratings said the relief measures announced by the Reserve Bank of India (Ron 5 May will offer some relief to financial institutions in the next 12-24 months, but at the expense of deferring the recognition and resolution of underlying asset-quality problems.

The rating agency, however, said the economic impact of the second wave could be less than the impact seen last year. “We expect the shock to economic activity from the latest wave of the pandemic in India to be less severe than in 2020, even though caseloads and fatalities are much higher. The authorities are implementing lockdowns more narrowly, and companies and individuals have adjusted behaviour in ways that cushion the effects,” the rating agency said.ContinueReading

Source: LiveMint
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