Financial conditions index takes big knock in Q1 due to second wave

Despite drag reading on index holds out optimism: IBA-CII

Reading on the Financial Conditions Index took a big knock in the first quarter this year to 59.1 from 72.5 in the previous quarter (fourth quarter of FY21) due to the second Covid-19 wave and lockdown imposed to contain its spread. 

Sunil Mehta, chief executive, Indian Banks’ Association (IBA), said the first quarter of FY22 was challenging due to the impact of the second wave. But, the availability of vaccines and the enabling policy measures from the regulators and the government have helped to keep the index above the optimism level. Overall reading of the index at 59.1 indicates optimism among