Loans

The article is based on a primary survey carried out to ascertain the magnitude and determinants of deaths of farmers by suicide in six districts of Punjab. It recommends the provision of financial compensation to victim families, waiving of debt, and strengthening of public healthcare and education system as the main policy measures for addressing this tragic phenomenon.

This article investigates the impact of COVID-19 on the banking sector through the trend analysis of return on assets and return on equity of the scheduled commercial banks. It covers both the pre- and post-lockdown periods. The results suggest that the governmental measures are helping ameliorate situations of bad quality loans and will improve future prospects of the banking industry.

The evidence of a decline in the non-performing assets ratio in India’s banking system points to a significant improvement in the health of banks. However, this may have occurred partly through the use of write-offs that erode the capital base of banks and also because of the time-bound moratorium on debt repayments announced as part of measures to address the effects of the pandemic on small units and other selected borrowers. In the circumstances, even though new pandemic-linked lending to micro, small and medium enterprises was partly guaranteed by the government, a rise in the NPA ratios and further erosion of bank capital seem inevitable.

Bandhan: The Making of a Bank by Tamal Bandyopadhyay, Gurgaon: Penguin Books India, 2016; pp 304, ₹414.