Banks in better position to manage stress in second Covid-19 wave: RBI

But lenders need to prepare for higher provisioning, monitor asset quality, says RBI

Banks are better placed in this Covid wave to manage stress in balance sheets than before, the RBI said, helped by higher capital buffers, improvement in recoveries and a return to profitability.
 
As the country battles a second wave of infections, state governments have imposed localised lockdowns to contain the spread. These curbs have hit economic activity, leading to job and business loss and increased stress in the system.
 
In its annual report released on Thursday, the Reserve Bank of India (RBI) said banks’ asset quality will need to be closely monitored in the coming quarters, with preparedness