IMPACTS OF COVID-19 PANDEMIC ON OPERATIONAL RESILIENCE OF INDIAN BANKS
Abstract
COVID-19 pandemic continues to impact economies worldwide, including financial markets. For banks, the pandemic generated multifaceted crises, primarily by increases in default rates. This paper aims to investigate the COVID-19 pandemic's impact on banking resilience in India. The comparative analysis is done during pre-pandemic and post-pandemic periods. Data of Indian banks are extracted from publicly available sources from 2008 to 2020, and Pearson correlation and regression analysis are used. Banks' return on assets (ROA) and return on equity (ROE) are dependent variables and EAGLES are independent variables. Based on findings, most EAGLES factors were significant at the 10% level. Equity and strategy were substantial at the 10% level, whereas asset quality and growth were relevant at the one percent level. Findings suggest that EAGLES liquidity was not a significant factor in evaluating banks' financial capabilities. EAGLES framework's other components were vital in assessing bank financial capability and resilience. However, NPL-determined asset quality has a detrimental impact on financial ability and was substantial at a 1% level. The study sheds light on India's economic situation and post-pandemic recovery strength.
Keyword : Indian banks, Operational resilience, resilience of banks, COVID-19 pandemic, EAGLE, Pearson correlation, Linear regression, liquidity risk, mortgage defaults, economic crisis , stock market
This work is licensed under a Creative Commons Attribution 4.0 International License.
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