With the pandemic, the banks are walking on a double-edged sword. On the one hand they are flooded with loan enquiries, and on the other hand they are facing the challenge of timely recoveries of existing loans. Individuals have lost jobs and taken pay cuts to cope with the financial pressures brought about by the pandemic. The moratorium period provided by the RBI has ended and pressures are building on every individual to recommence EMI repayments. Banks are also under tremendous pressure to recover outstanding payments in order to maintain their liquidity. The last round that were declared as bad debts gave large corporates an unhindered access to bank funds. However, the real crisis is just hitting home, and the retail borrowers are at the receiving end.
