Banking sector is slowly emerging from after-effects of 3 waves of Covid-19

For the banking sector, it will be a tough year, with more to negotiate

Reserve Bank of India (RBI) governor Shaktikanta Das in his policy statement last month referred to “Knightian uncertainty” (named after the economist Frank Knight). It’s the lack of any quantifiable knowledge about some possible occurrence, as opposed to quantifiable risk. His observation was on Covid-19 and the fallout of its mutations, but it holds true of the post-Ukraine world as well.

The banking sector is slowly emerging from the after-effects of three waves of the pandemic. Non-food credit growth rose 8.3 per cent in February 2022, from a low of 5.4 per cent in April 2021. All indicators show that