Post covid-19 effect on retail and SME funding
1. cash flow of most of the industries and people are highly affected.
2.Moratorium given by RBI is a necessary major many more major may come like one-time restructuring
3. Economic activity would not be normal once economy resume it may take months like six months.
4. Bank should pass on funds to nbfcs so that Nbfc fush with funds.
5. The projects which are closed may take longer time to resume because most of the labor is migrated.
6. Builder project timeline will have adverse effect because of Labor shortage.
7. The customer who has opted for moratorium should not be seen as negative. Instead of it while funding business, zone should be seen like green zone, Red Zone or containment Zone.
8. Some of the industries like who makes sanitizer will be an opportunity business because the effects of covid-19 will be too long and the cleaniness will become habit for the people so Bank can fund them more.
9. Tourism industry is adversely affected from covid-19 and for the next 5 to 6 months tourist industry will be adverse.
10. Work-from-home is an emerging concept of Due covid-19 formost of the companies and will be continue in future to make cost cutting.
11. The people who takes house are salaried class also and in most of the companies we have seen salaries cut it will adversely affect the housing loans
CA Ankit chaturvedi
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