IMPACT OF COVID 19 ON THE INDIAN BANKING AND CAPITAL MARKET

Abstract

The global Covid-19 pandemic has emerged as a “black swan” event and will require extraordinary measures from governments across the globe to re-ensure economic stability. Globally, the pandemic has infected thousands of people in at least 190 countries and territories, according to the World Health Organization. As the immediate containment of the virus requires firm measures of quarantine and isolation, this has disrupted world economy in an unprecedented way. The Organisation for Economic Co-operation and Development (OECD) has halved the global gross domestic product (GDP) growth projection for 2020 due to the virus outbreak. Based on when the pandemic is likely to come under control, several economic scenarios indicate global recession of varying magnitudes. The Indian banking and capital markets sector will have to deal with the crisis in a manner never seen before. With the thrust on ensuring business continuity/contingency plans, this sector need to emerge as responsible institutions and ensure the safety and security of their employees, customers, and the society. With this backdrop the present paper made an attempt to explain the impact of covid-19 on the Indian banking and capital market.