The Coronavirus Pandemic apart from being the deadliest health menace on the planet globally has also had a detrimental impact on the economic functioning of the country as it has led to widespread unemployment situation as the companies have not been inclined to keep employees in their roster as they have not been able to attend the requisite office premises owing to the lack of facilities for maintaining social distancing and therefore many employees have been downsized and therefore they have been called down owing to retrenchment and provided adequate compensation benefit to them. Owing to the financial inefficiencies the banking institutions have slowly become Non-Performing and Non-Functional Assets. However, owing to the initiatives and measures taken by the Central and the State Governments, the economic recovery has been initiated and the banking institutions have started recording encouraging numbers.
Indian Overseas Bank which is a central banking body established in Chennai has recorded an increase of 11.3% in the income earned and generated by the borrowing institution with the income skyrocketing from 5197 crores to 5786 crores. Apart from that, it has also been observed that the banking institution has posted favorable numbers in the last four quarters indicating that the banking institution is slowly recovering from the income slump that it witnessed and is progressing towards economic self-sufficiency. Moreover, it had recorded a net loss of 6075 in the previous quarters in the previous year. This year it has recorded a net profit of 213 crores. Partha Pratim Sengupta, MD, and CEO of Indian Overseas Bank has said that the banking institution is out of the Prompt Corrective Action (PCA) Mechanism which it was in for a considerable period and is making progress towards establishing itself as one of the primary banking institutions in the country.
Thus it is very important to understand that economic recovery is accelerated and the economy is expected to show a V-shaped economic recovery in the following income and revenue quarters.