Cloud on banking stocks on NPA concerns amid second wave of pandemic

The second wave of the Covid pandemic in India is threatening to bring back woes for banking stocks, owing to the possibility of a rise in non-performing assets and projections of lower economic growth.
 
The Nifty Bank index has come off 15 per cent from its peak in February, underperforming the benchmark Nifty which is down 6 per cent. There can be a sharper sell-off, especially by institutional inve­stors, if the current Covid-19 situation continues for the next month or two. And while PSU banks have borne the brunt of the fall, so far, private sector banks can also