“A Study On Challenges Faced By Indian Banking System During

Pandemic”

Project Report submitted in partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

OF
BENGALURU CITY UNIVERSITY

Submitted by
PRITI DUTTA
Reg. No: MB206650

Under the guidance of

Mrs. Kavya. S
(Assistant professor)
SB COLLEGE OF MANAGEMENT STUDIES,
Bengaluru City University
2020-2022
 WORK DONE DIARY

Signature of
Week Dates Work Carried out Initials of Faculty
Co-Guide Guide

II

III

IV

DECLARATION BY THE STUDENT

I hereby declare that “A STUDY ON CHALLENGES FACED BY INDIAN
BANKING SYSTEM DURING PANDEMIC” is the result of the project work
carried out by me under the guidance of Mrs. KAVYA.S in partial fulfillment for
the award of Master's Degree in Business Administration by Bengaluru Central
University.

I also declare that this project is the outcome of my own efforts and that it
has not been submitted to any other University or Institute for the award of
any other degree or Diploma.

Place : BENGALURU Name: PRITI DUTTA

Date: Register Number: MB206650

 GUIDE CERTIFICATE

This is to certify that the Project Report "A STUDY ON EFFECTIVENESS OF

REWARD SYSTEM ON EMPLOYEE MOTIVATION" Submitted by MANOJ KH
(MB186669) to Bengaluru Central University, Bangalore for the award of Degree of
MASTER OF BUSINESS ADMINISTRATION is a record of work carried out
under my guidance.

PLACE: BANGALURU

DATE:

SIGNATURE

TABLE OF CONTENTS
Sl. No. PAGE NO.
CONTENTS

1-18
INTRODUCTION
2

METHODOLOGY 19-21

3
STRENGTH, WEAKNESS,

OPPORTUNITIES AND CHALLENGES

22-25
(SWOC) OFTHE

RESEARCH
4
OUTCOMES OF THE STUDY 26-28

5
EXPERIENCE, LEARNINGSAND
29-32
CONCLUSION

33
BIBLIOGRAPHY
 Chapter -1

INTRODUCTION
INTRODUCTION

The banking sector is a key component in the service sectors as major chunk of the funds

flows through this sector. At global concept, banking system is the focal point in the financial

set-up of any developing country. Today, the banking industry is facing the unprecedented

set of challenges like rapidly changing market, new and innovative technologies, wide

economic uncertainties, severe competition more demanding customers, etc. Customer

satisfaction, customer retention and new customer acquisition are the prime focal points in

the banking system. The banks cannot think of introducing a financial product without e-

banking support. Be it customer service, transactions, remittances, audit, marketing, pricing

of any other activity in the banks, e-banking plays an important role not only to complete the

activity with high efficiency but also has the potential to innovate and meet the future

requirements.

The banking sector was early adopter of technology and in that way set an example to the

other industries the need to opt for automation for taking full advantage in operational

efficiency. The automation ensures the customers feel comfortable to undertake the financial

transactions with plastic cards and transact from the home.

The Reserve Bank of India is the country's central bank. The Reserve Bank of India (RBI)

oversees and governs India's financial system. Banks play a critical role in deposit

mobilisation and credit disbursement to many sectors of the economy.

The modern banking in India started only in the eighteenth century. ‘Bank of Hindustan’ the

first bank in India was established in 1770. Better means of communications, transportation,

uniform currency, the unification of the country under one Government laid the foundation

for development of banking institutions in the country. The Indian banking sector starting

with the ‘Presidency Banks’, the ‘Bank of Bengal’ in 1809 through ‘Imperial Bank of India’,

etc. This has been developed by gaining momentum in advanced manner through enactment
of Banking Regulation Act 1949, expansion of branches during 1950-1970, two historic

events

in the year 1969 such as social control on banking companies and Nationalisation of 14

major Indian banks, special thrust on internal control and profitability through newer

activities during 1985-1990 and M. Narasimha committee’s recommendations to improve its

efficiency and effectiveness in the then Indian Financial System.

The banking system in India is significantly different from other the banking

system in India is significantly different from other because of the country’s

unique geographic, social, and economic characteristics. India has a big

population and land area, a diverse culture, and significant income

differences throughout its regions. A considerable part of the population is

illiterate, yet the country also boasts a large pool of managerial and

technologically advanced expertise. Around 30 to 35 percent of the

population lives in metro and urban areas, with the balance dispersed

throughout many semi-urban and rural areas. The country's economic policy

framework is a mix of socialist and capitalist elements, with a strong

emphasis on public investment. India has pursued growth-led exports rather

than the "export-led growth" of other Asian economies, focusing on self-

sufficiency through import substitution. These traits are reflected in the

banking and financial sector's structure, scale, and variety.

The corona virus outbreak has now affected millions of people worldwide,

resulting in thousands of deaths. Every day, new cases of this virus emerge,

posing a growing threat. Countries plagued by the corona virus, on the other

hand, are currently taking significant steps to combat it using AI and Big

Data technology. AI and Big data played a crucial part in COVID-19,

according to the World Health Organization (WHO). COVID-19's continued

spread has become one of the most serious dangers to the world economy

and financial markets. To mitigate the effects of the corona virus outbreak,

India, like many other countries around the world, has implemented a

nationwide lockdown, limiting population movement, shutting down public

places and transportation, and advising citizens to stay indoors, maintain

social distance, and work from home [6]. The consequent economic

disruption is massive, with a significant short-term drop in activity for both

large and small enterprises.

The COVID-19 pandemic's negative impacts are affecting major sectors of the

Indian economy, with manufacturing, auto, retail, aviation, and hospitality suffering

the brunt of the shutdown. As a result, fast-growing digital payments, which are

intimately tied to the aforementioned sectors, have suffered. Shuttered stores, travel

bans, and lower discretionary spending by customers are all hurting digital

payments. As the number of COVID-19 cases rises, IoT software solutions are

taking a pinch [8 There are many IoT verticals where all operations are placed on

pause, such as manufacturing, transportation, and travel hospitality. However,

employers' priorities have shifted. For example, organisations now want to monitor

employees' health and wellness while they work from home. In this COVID-19

epidemic, such use cases have emerged. The new use cases were developed in

tandem with the application areas where demand for IoT software solutions has

skyrocketed. The information is critical to our understanding of the world,

particularly when it comes to the emergence of phenomena like the COVID-19

pandemic. During the COVID-19 pandemic, data visualisation has been

increasingly popular [10]. Infection heat maps and charts demonstrating

transmission patterns are saturating social media feeds.

The 1918 Spanish Flu, the HIV/AIDS epidemic, SARS (Severe Acute
Respiratory Syndrome), MERS (Middle East Respiratory Syndrome), and

Ebola are just a few examples of global epidemics. Diseases including

smallpox, plague, and polio have been a problem in India in the past. Each of

these instances was quite serious in its own right. However, the Covid-19

virus, which first appeared in China in December 2019 and quickly spread to

practically every country in the world over the next several months, has the

potential to become the world's worst health calamity This has already been

labelled a "Black Swan" event for the world economy by many analysts. On

January 30, 2020, India became the first country to report the sickness. Cases

have consistently and considerably increased since then. Concerns about the

corona virus are likely to exacerbate problems for Indian banks [13],

according to ratings agency Fitch, which downgraded the crucial sector's

operational environment assessment by one notch.

According to the agency, the score has been reduced to "BB" from "BB+"

previously, with the COVID-19 outbreak adding to the sector's fears, which

are already hampered by low business and consumer confidence. The

purpose of this study is to delve deeper into COVID 19's influence on the

financial sector, specifically on banks and banking technology firms.

SCOPE OF THE STUDY

The banking sector is considered to as the backbone of the Indian

economy and offers various career opportunities to students from all
fields: science, commerce humanities. You need to good in analyzing
numbers with strong mathematics so that you can interpret and analyze
numerical data. It is one of the lucrative careers especially for the people
who are looking job in government sector. 

The sector is in the huge need for manpower as Government of India is

taking banking to remote areas also by opening new branches. It is also
considered one of the socially respectable and secure job. In India, there
are multiple examinations for bank jobs conducted by IBPS, State Bank
of India and Reserve Bank of India (twice in a year). To clear these bank
xaminations you need to be proficient in Reasoning, Aptitude, General
knowledge, General English and Arithmetic topics. Communication and
interaction with customers is most important in this field and hence gives
you an exposure to different types of people with varied needs and
lifestyles and enhances your confidence level as well in the long run.
 Need of the study:

Banking services play as important role in business industry as they provide

finance to various business industry and firm. Banks have introduced various easy
finance scheme which helps firms to get the monetary helps to run the business.

Individuals and organizations need banks accounts and services that enable them
to safely hold cash and make transactions. They need access to credit in forms
ranging from microcredit to massive corporate loans to enable investment and
economic advancement. The environment in which banks operate and compete.

There are five most important banking services and accounts are:

 checking accounts.

 Savings accounts.

 Debit & credit cards.

 Insurance.

 Wealth management.

Because it mobilises deposits and offers credit to numerous industries across

India, the banking industry plays a critical role in the development of the
economy. It is in charge of overseeing and enforcing exchange control and
banking rules, as well as the government's monetary policy.

1. To ensure that clients' savings are secure.

2. To control the supply of money and credit.

3. To encourage public confidence in the working of the financial system. It
increases savings speedily and efficiency.
4. To prevent financial power from being concentrated in the hands of a few
persons and institutions.
5. To set equal norms and conditions. (i.e.) rate of interest.
The bank's following functions illustrate why it exists and how important it
is:

• To ensure that clients' savings are secure.

• To keep a tight grip on the money and credit supply.
Why To boost public confidence in the financial system's functioning, raise
savings quickly and effectively.
• To prevent financial power from being concentrated in the hands of a few
persons and institutions.
• To apply the same rules and conditions to all sorts of consumers (e.g.,
interest rate, loan period, etc.) .
The Indian banking industry is passing through a phase of customers’ market.
Customers have more options when it comes to selecting a bank. Within the bank that
operates in India, a competition has been developed. The bank's services have gotten
easier and more convenient as a result of increased competition and advancements in
technology. This study will serve as a foundation for future research in this area.

The adoption and usage of E-banking is dependent on the Internet and

telecommunication networks. At present nearly 40% of the population are accessing
internet in the country and it is expected to increase in the near future, which will be a
great boon to E-banking.

Technology helps banks in enabling efficient management, lower operating costs,

greater geographic diversification, improved or sustained competitive position, new
revenue opportunities, quicker ‘go-to-market’, richer customer experience, enterprise
wide customer view, etc In the coming decade, the Indian banking sector must make a
promise to customers, particularly small and retail customers, as well as society at large,
to make banking transactions faster, cheaper, and easier. Customers still do not have
access to financial services that are faster, cheaper, or easier.The impact of the
demographic variables such as age, gender, marital status, educational status,
employment status, occupational experience, income, etc. of customers has significant
role in determining their level of satisfaction on E- banking. With its great network of
operation, the unparallel public sector banking has to compete with the fast-growing
private sector banking to withstand the growing volume of business, to satisfy the
increased customer base and to meet the rising personnel costs through
Computerisation. The quality of customer service in banks, particularly in public sector
banks, has been the topic of vehement criticism during the post-Nationalisation phase
with the shift of the so-called ‘class banking’ to ‘mass banking’.

The success or failure of E-banking in a country largely depends on several

dimensions such as consumers trust in a particular bank, service quality offered by the
bank, consumer preferences and their ultimate satisfaction. Therefore, banks should
continuously strive to meet the consumers’ expectations, demands and requirements in
order to maintain their own identity.

planning and appropriate implementation are necessary for successful setting up of

customer service standards and for meeting such standards every day for every
transaction, it is equally important for banks to monitor outcomes by obtaining
customer feedback (Prabir K Biswas 2007-08). To boost customer loyalty, banks must
have a clear understanding of their customers unfulfilled needs 19 and must come out
with products/services that will satisfy those needs.

Relevance of the study:

1. By studying the people who are not included we would come to know the
problems faced by poor in having access to banking field.
2. The poor have to pay high interest rates even from 600 to 1000 percent
on the loans borrowed from unorganised sector.
3. Government allocates a lot of money to the poor as subsidy which never
reaches them due to money reasons. The subsidies can be directly rooted through
banks.
Statement of the problem:

The rapid spread of epidemics such as covid-19 has led to a steep decline in

key indices,indicating a significant impact on its impact and GDP growth.

The first news of the outbreak of novel corona virus came from Wuhan city of

China on 31 December 2019. This corona virus is a new virus that has not yet

been identified in humans. The literature indicates that the corona virus is a

very large family of viruses.its spreading speed is very fast . this corona virus

can cause anything from the common cold to the more severe autism

syndrome. To prevent this from spreading across the country, the Indian

government announced a lockout on 24 march 2020. extended to 3 may 2020.

Many actions taken by many governments around the world, WHO praised

the timely action by Indian Prime Minister Narendra Modi and many people

as a lockdown, because of the cure of the disease or in the absence of vaccine

to prevent the virus from spreading was the best option. By the way , various

institutions like IMF and World Bank,Central Banks economists, fund

managers and consulting firms from different countries have expressed their

fears about the devastating effect of lockdown in GDP world especially in

general and emerging economics like India.

On 14 April, the IMF released its global growth projections. It was

revealed that the great depression was likely to occur after the great

depression in the 1930s, which could be better than global financial

organizations.
 CHAPTER-2
METHODOLOGY
 OBJECTIVES OF THE STUDY:

The following are the objectives of the research:-

 To determine the challenges in Banks.
 To analyse the diversion massive challenges into meaningful transformation.
 To study the challenges faced in E-banking India.
 To understand the opportunities exixting in E-banking in India.

RESEARCH METHODOLOGY

Research is portrayed as human activity in light of fast application in the examination

of matter. This research deals with secondary data. The information collected for the
project is mainly via sources like internet, journals, magazines and other published
reports. News reports and Magazines are the most widely used one’s. Also data
regarding Increase in Suicide has been taken from various websites monitored by both
Government and NonGovernment agencies. Information via newspapers has also
played a huge role in data collection.

DATA COLLECTION

Secondary Data Most of the information is gathered through secondary sources. The
method that is used to collect secondary data is from books, websites, journals and
Magazines.
 LITERATURE REVIEW

 Ram Singh, Rohit Bansal (2020)

The Banking Industry of India is encountering an adjustment in standpoint in scope,

setting, structure, limits & organization. The change in "Information Technology

Development" is considerably and visibly transforming the status of banking

activities. As technology has advanced, new standards have emerged as critical

resources for gaining greater capability, control over activities, effectiveness, and

advantage. New ideal models as advancement not simply expect a critical activity

being created and introduction of new things and workplaces as ATM. The web

banking, Tele-banking, etc yet also accept a critical activity to the extent achieving

operational capability yet these moreover help in the advantage commitment the

officials' method by engaging the top organization to choose thing esteeming in an

engaged circumstance. The idea of organization is as a rule comprehensively used to

review the display of various financial frameworks. Primary objective of the

examination is to feature the new standards in banking division and challenges and

prescribes the prerequisite for further research to develop an all around recognized

scale and model of new financial framework.

 Dr.Asif Perwej (2020)

The COVID-19 pandemic has the potential to be one of the most catastrophic threats

to the financial services industry in in a century. The impact of COVID-19 on banking

will be a significant drop in demand, decreased incomes, and production shutdowns,

all of which will harm banks' business. As enterprises race to deal with the impact of

COVID-19 on financial services, the problem is exacerbated by staff shortages, a lack

of digital maturity, and pressure on current infrastructure. In the wake of the novel

coronavirus epidemic COVID-19, banks have their hands full. As the virus spreads

around the world, borrowers and businesses risk job losses, slowed sales, and

decreased earnings. Customers are likely to seek financial assistance from their banks.

The enormous economic costs of pandemics are one obvious way in which they might

affect financial systems. Banks must have a plan in place to protect staff and

customers from the coronavirus in order to manage the virus's direct economic

impact. Many institutions are now encouraging some workers to work remotely. The

goal of this article is to show how pandemic covid-19 has affected the banking and

financial sectors. According to the Indian bank, India's coronavirus outbreak poses a

long-term threat to the country's financial system. Banks are the lifeblood of the

economy, providing capital to both businesses and individuals. To keep the system up

and operating, their stability is critical.

  Punam Sharma, Dr. Neha Mathur

Across today's period, everyone knows that to combat a pandemic like covid-19, the

Indian government issued a complete lockdown in the country on March 24, 2020,

which was then prolonged by the Indian government until May 3, 2020.. The Indian

government needs to lockout so that the lives of the people of the country can be

saved. This is going to severely affect various sectors of our country. Banking is the

backbone of the Indian economy. This article is an attempt to assess the causal impact

of an pandemic like covid-19 on banks due to lockdown. As a result , all commercial

organizations, educational institutions and public and private sector offices have been

closed. The article has indicated a very serious impact of the lockdown on banks in

the event of moving beyond July 2020.

 Ambrish Kumar Mishra, Archana Patel and Sarika Jain

The COVID-19 pandemic adversely impacted various industrial sectors of India as

well as other countries across globe. In India, impact is resulting to a negative growth

rate in economy. Many industries were thriving prior to the epidemic, but have since

been brought down by it. As a result, evaluating and disseminating data on the

industries that have been badly harmed by the pandemic is crucial; these sectors are

vital to the Indian economy. The banking sector is one of the most significant sectors

of the Indian economy, as it is responsible for all financial activities in the country

and serves as a support system for all businesses in terms of financing, credit,

transactions, collection, and payment, among other things. There are a plethora of

publications available in the public domain that detail the consequences of the viral
 epidemic. The information is not only in physical form, but it is also dispersed across

the internet in a variety of formats. Despite the massive amount of data available, the

main challenge is obtaining data that is relevant to the user's requirements. Although

online databases are updated on a regular basis, they are unable to give inference on

previously stored knowledge. We can extract latent and indirect information from the

knowledge base by employing inference capabilities. Various Covid-19 ontologies

are available online, but none of them focus on the performance of India's financial

industry during the event. As a result, consumers frequently do not receive relevant

information in response to their queries. This article aims to highlight the impact of

the Covid-19 on the performance of the Indian banking sector by creating and

evaluating the world's largest comprehensive knowledge base, known as an ontology

(Covid19-IBO), in order to obtain semantic information. In addition, we address a

few key research questions related to the Indian economy.

 Mayank Jindal, Vijay Laxmi Sharma (2020)

Covid-19 is a corona family virus that was created in the year 2019. Since

December 2019, it has been spreading over the world by close contact with infected

people or Covid-19 fomites. It may have originated spontaneously in Wuhan

(China's Anhui Province) or by China's "Wuhan Institute of Virology" research

centre. It's quickly spreading over the globe. Most countries, including India, have

declared a pandemic, according to the World Health Organization. People can

defend themselves against the pandemic by keeping their distance from one another.

However, meeting their fundamental needs (food and medicine) is critical to their
 survival, and money transfers play a critical part in this. Online banking allows you

to conduct business on an electronic basis without exchanging any physical goods

while retaining social distance. Online banking is a modern notion of banking in

which consumers can conduct some banking transactions (such as cash transfers and

account balance checks, bill payment, phone recharge, and so on) via the Internet on

their phone or computer. One of the most essential characteristics of online banking

is that it may operate entirely electronically without the exchange of any real goods,

making it an important tool for pandemic preparedness. The goal of this research is

to determine how effective online banking may be in combating the Covid-19

epidemic. To meet the goals of this paper, a survey was conducted. It has been

shown that online banking played a crucial role in protecting people throughout the

Covid 19 time. When it came to online bill payment, prepaid mobile phone

recharge, and dish television, people felt fully safe from the COVID 19 malware.

 Naga Lakshmi (2020)

Banking systems collect amounts of data on day to day basis, be it customer’s

experience (CX) in digital banking operations and how it challenges to the customers

and its bring the impact on economy development in the country. The purpose of the

study is to measure customer experience, engagement, satisfaction, retention in the

digitised sector. Both qualitative and quantitative research approaches were included

in the study design. This sampling yielded approximately 150 questionnaires in the

Sivakasi area. According to the research, the digitalization of banking and customers

has improved service quality, loyalty, satisfaction, and engagement, among other

things. Being particularly concerned with the attitudes of Sivakasi customers

 regarding one of the most valuable secondary sectors. This research finding that how

to retention the valuable customers and most of the majority of the customer satisfy

with the present technology functioning towards the bank. This study suggests that

digitalized settings are designed for the objective of lowering internal costs, reducing

time resources, reducing fraud, and increasing speed. While customers attitude

towards the net banking might always be positive. The mode of transformation

primitive customer to technology customer its the pave for developing the economy

in our country. This study has a number of limitations, but it does pave the path for

further research in the topic.

 Rajesh Sharma, Abhishek Mishra and Arprit Khurana (2020)

The banking sector in India serves as the economy's backbone. The majority of

banks provide consumers with cutting-edge services. By providing superior online

services, every bank tries to increase its profit. Customers' perceptions and levels of

satisfaction with internet banking were investigated through an empirical study.

According to the findings, several demographic characteristics such as age,

occupation, and educational attainment have a substantial impact on respondents'

attitudes regarding internet services. Customer happiness is strongly linked to great

online banking services.

 Avil Saldanha, Kevin Nitin (2021)

This study examines how the COVID-19 pandemic has impacted banking,

specifically retail banking, in the eyes of the ordinary customer. The research looks

at how the retail banking industry has been affected. The main focus is on whether

and how people's preferences or perspectives on how they engage with their banks

have changed. If there has been a decrease in service quality, response time, and

their perception of how safe it is to undertake banking transactions online or

digitally. The study also examines whether people have used the Unified Payments

Interface and how they feel about it. In addition, the survey examines whether

people's consumption patterns have altered, and so on. The information was acquired

through an online Google form that was shared on social media, and the results were

compiled, evaluated, and interpretations were made to determine how the COVID-19

pandemic affected or did not influence the client base of retail banking.

 Dr. Chanduji P. Thakur (2020)

The financials of the corporate sector have already begun to suffer as a result of

reduced productivity and lockdowns. Supply chain disruptions, manufacturing

stumbling blocks, and crippled health-care systems all necessitate a substantial

public fund/stimulus to keep things running properly. With economic growth

expected to stall — the IMF has lowered India's GDP growth forecast for 2020-21 to

1.9 percent — the banking and financial industry, whose prospects are directly

linked to the economy's, will face the pain. A rise in problematic loans is possible.

"The slowdown may result in employment losses, putting pressure on banks' retail

lending portfolios. "Income from tourism and the entertainment industry, among
 other things, has already devastated the economy. These and other factors are putting

a burden on the global economy, which might have ramifications in the next year. To

combat COVID-19, Asia-Pacific governments, central banks, and supervisory bodies

have implemented a variety of steps. Liquidity injections, targeted loans to

vulnerable businesses and regions, and policy rate reduction are just a few examples.

Support for banks to grant forbearance to otherwise economically viable households

and businesses affected by COVID-19 is also included.

 Miroslav Mateev , Muhammad Usman Tariq ,Ahmad

Sahyouni 

The impact of banking competitiveness and capital levels on risk-taking behaviour

of banking institutions in the Middle East and North Africa (MENA) area is

investigated in this article. During the COVID-19 epidemic, the topic is seen to be

extremely important. We examine whether increased competition drives banks to

keep higher capital ratios using data from over 225 banks in 18 MENA countries.

Using panel data approaches and discriminating between Islamic and conventional

banks, we show that when operating in a more competitive environment, banks have

higher capital ratios. We also show that when banks in the MENA region face a

larger risk, they increase their capitalization levels, and vice versa. In addition,

banking concentration (as assessed by the HH-index) and credit risk have a large and

beneficial impact on IB capital ratios, whilst competition has a constraining effect on

capital levels. When controlling for ownership structure, regulatory and institutional

environment, as well as bank-specific and macroeconomic variables, the results

remain consistent. Our findings encourage regulatory bodies concerned with the

MENA region's banking sector's financial stability to strengthen their policies in

order to drive banks to better match capital requirements and risk during the
COVID-19 epidemic.

CHAPTER3

SOWC ANALYSIS
SWOC Analysis

SWOC Analysis of Employees Recognition at Intuit contextual investigation.

Representatives Recognition at Intuit "alluded as Employee Recognition in this
investigation" is a Harvard Business Review (HBR) contextual analysis utilized for
MBA and EMBA programs. It is composed by Hayagreeva Rao, David W. Hoyt and
manages subjects in zones, for example, Leadership and Managing People Managing
yourself, Motivating individuals, Organizational culture, Personnel arrangements

SWOC Analysis represents Strengths, Weaknesses, Opportunities, and Threats that

Employee Recognition experiences both inside and in full scale condition that it
works in Qualities and Weaknesses are regularly limited to organization's inner
abilities

Openings and Threats are factors that are investigated in perspective on the common
market powers and different factors, for example - financial, mechanical, lawful and
natural, political and social, wellbeing and security.

As indicated by worldwide official study done by Harvard Business Review and

Bright line Initiative - Only 20% of the key targets set by associations are figured it
out. Rest 80% of the vital targets are not accomplished as a result of
incomprehensive arranging, restricted assets.

The fruitful associations, for example, Employee Recognition are the person who
ready to anticipate market patterns superior to anything others, give assets to create
items and administrations to use those patterns, ready to counter contenders' dangers,
and meet clients' normal offer.
 1.Strength:

1. Vast swathes of the global economy were held hostage by COVID-19 over the last
two years. To save humanity as well as the economies from the clutches of the
virus, speedier and equitable access to vaccines remained the only hope. India’s
remarkable progress on this front is a shining example of our scientific capabilities
and tech-enabled public delivery.

2. While it is heartening to note that the economy is gradually getting back on its feet
after a devastating second wave, recovery has progressed in an uneven manner.
Contact-intensive services are still to regain the lost capacity despite rapid
improvement in the recent period. 2021-22 data on GDP revealed that there still
exists significant gap in both private consumption and investment, relative to their
pre-pandemic levels in 2019-20. So, while the economy is picking up pace, it is yet
to cover a lot of ground before it gets broad-based and entrenched. This points to the
need for sustained impetus so that growth could return to, or better still, exceed the
pre-pandemic trend.

3. India as an emerging market and developing economy has significant potential to

catch up with the rest of the world supported by favourable demographics,
improving skill base and strong domestic demand.

4. The Government is providing necessary support – especially through capital

expenditure and reforms in various sectors like infrastructure, manufacturing and
telecom, apart from other institutional changes to boost productivity, ease supply
constraints and improve business environment.

5.  The pandemic has opened new opportunities of growth in digital and green
technology and also on account of resetting of global supply chains that could be
advantageous to India.

6. Exports have been a bright spot during the recent months and are likely to benefit
 further from global economic recovery. In the presence of such enabling conditions
and supportive policies, I have no doubt that we have a unique opportunity to step
up growth as we emerge from the pandemic

7.  Contributing the largest share of aggregate demand (around 56 per cent of GDP),
private consumption is critical for inclusive, durable and balanced growth of our
country. Daily wage earners and workers at the lower rungs of the society have
incurred significant losses of income and employment during the pandemic that will
take time to repair. The International Monetary Fund (IMF) estimates that less than
70 per cent of emerging economies will be able to achieve 2019 employment levels
even by end of 2022.

8. In India, demand for work under MGNREGA1 remains about 10 million higher than
pre-COVID levels, suggesting that the recovery in informal sector has still to cover
a distance. A minimum tenure of contract for semi-skilled labour, especially in
infrastructure sector and linked to duration of projects may perhaps induce
employment certainty and consumption. Small businesses have also been hit harder
and would require support to recover and achieve their full employment potential.

9. The COVID-19 pandemic has reinforced the need to spend on physical and social
infrastructure including education, health, innovation and digitisation which are not
only welfare-enhancing, but also growth-inducing. Further, good quality public
expenditure helps crowding-in private investment and alleviating critical supply
constraints. This can also ease inflationary pressures.

10. the COVID-19 episode provides a real-life experience to take a fresh look at certain
aspects of existing prudential and regulatory norms for financial entities regulated
by RBI. Certain concerns have re-emerged from the crisis which warrant our
attention. Most importantly, we are faced with the question of capital and
provisioning buffers of banks, their adequacy and resultant usability during a crisis.
I would thus strongly urge the banks to focus and further improve their capital
management processes with a forward-looking, scientific and prudent approach. The
key point is to envisage the capacity for loss absorption as an ongoing responsibility
of the lending institutions. It is expected that banks will exhibit prudent risk-taking
behaviour and use their capital efficiently.
 2.Weaknesses:

1. firms that have stopped working miss out on revenues, and therefore might not be
able to repay loans. Similarly, households with members who have lost their jobs or
are furloughed have less income, and therefore might not be able to repay their
loans. This will result not only in lost revenue but also in losses (if repayment
capacity is permanently impaired), negatively affecting profits and bank capital. And
as a swift recovery becomes less likely, banks can expect further losses, resulting in
the need for additional provisions, further undermining their profitability and capital
position.

2.  Banks are negatively affected as bonds and other traded financial instruments have
lost value, resulting in further losses for banks. There might also be losses from open
derivative positions that have moved in unexpected directions due to the crisis.

3. Banks face increasing demand for credit, as especially firms require additional cash
flow to meet their costs even in times of no or reduced revenues. In some cases, this
higher demand has presented itself in the drawdown of credit lines by borrowers.

4. Banks face lower non-interest revenues, as there is lower demand for their different
services. For example, there are fewer payments and transactions to be done with
lower economic activity, and fewer security issues by corporates reduce fee income
for investment banks.

5.  Governments have provided firms and workers with direct payments to substitute
for their lost revenues. While this does not directly affect the banking sector, it
allows borrowers to continue serving their loan repayments, and thus have an
indirect positive effect on banks as losses are avoided.
6. There are direct support measures that positively affect banks, including loan
guarantees. These guarantees imply that part (or all) of the loan losses incurred if the
borrower is unable to repay would be covered by the government.

7. Low interest rates, close to zero or even negative, are here to stay for much longer.
This will certainly put further pressure on banks’ profitability.

8. The trend towards digitalisation might increase even further, as social distancing
might become the new norm, and personal interactions between bank and client
carry even higher costs. This might imply the closure of further branches and
stronger reliance on telephone and internet banking.

9. The crisis will further strengthen competition for banks from ‘fintech’ (financial
technology companies) and especially Big Tech companies, such as Alibaba or
Tencent in China and Facebook, Google, Apple and Amazon in the Western world.
These large platform providers are likely to come out of the crisis further
strengthened, with a large cash pile and in a strong position (and possibly with a big
appetite) to expand into financial service provision. This might put additional
competitive pressure on banks in their core business lines.

10. As banks will have a critical role not only during the pandemic containment phase
but also during the economic recovery phase, sufficient capitalisation will be
important as economies will have to reallocate resources across sectors from ‘losers’
to ‘winners’.
 3.Opportunities:

1. Banks must continue to focus on customers’ needs to help them recover from the

impact of COVID-19.

2. Equally, banks must adapt their operating models to drive efficiency and resilience.

3. Risk management thresholds need to be reflective of broader economic changes,

and greater attention must be given to more challenged customer segments.

4. Digital access and literacy: Latest consumer financial research highlights that to

truly connect with and gain the trust of consumers in a fully digital world, banks

must shadow the evolution of the online e-commerce giants that have now built out

entire connected ecosystem experiences and value propositions. To create this,

banks need a sophisticated understanding of their customers’ context and

needs.  Banks now have an opportunity, as they enhance their digital capabilities to

adapt during this crisis, to systematically collect relevant data and create connected

experiences. This will provide a more personalized and intuitive relationship

through all channels.

5. Customer experiences and need for human interaction:

6. customer research indicates that empathy and understanding need to be embedded

into all interactions with customers. This concern is not so much about whether

their point of contact is a screen or a human being, but whether they feel the bank

understands their personal situation and is “human” in its treatment.

7. Banks are at the centre of financial flows. With advanced risk management and

analytical capabilities, banks can become trusted advisors for their clients. They can

help companies see their data in new ways: spotting anomalies and uncovering
 patterns that affect their business or by building integrated ecosystems of trusted

providers to connect different customers and foster growth opportunities.

8. Banks will need to optimize remote working for the long-term by scrutinizing new

issues around productivity and risk as they become clearer and consider how to

maintain and propel advances in sustainability and diversity.

9.  COVID-19 has highlighted where controls are still manual and detective. As banks

modernize and automate processes there is an opportunity to embed preventative,

automated controls.
 4.Challenges:

Banks are the backbone of every economy. It is very important that banks remain
healthy financially. Otherwise, a financial crisis can hit a country leading to
recession like the US in 2008.

This is especially true for developing countries like India. "The banks are the
lifelines of the economy and play a catalytic role in activating and sustaining
economic growth, especially, in developing countries and India is no exception," S S
Mundra, deputy governor of the Reserve Bank of India said in a speech recently.

1. The biggest risk to India's banks is the rise in bad loans. The slowdown in the
economy in the last few years led to a rise in bad loans or non-performing assets
(NPAs). These are loans which are not repaid back by the borrower. They are, thus,
a loss for the bank. Net NPAs amount to only 2.36% of the total loans in the banking
system. This may not seem like an alarming figure.

2. However, it does not take into restructured assets - when a borrower is unable to pay
back and the bank makes the loan more flexible to be paid back over a longer period
of time. Restructured assets too put pressure on a bank's profitability. Together, such
stressed assets account for 10.9% of the total loans in the system. And these are just
loans which are identified as stressed assets. 36.9% of the total debt in India is at
risk, according to an IMF report. Yet, banks have capacity to absorb only 7.9% loss.
So, if these debts turn bad too, banks will face major losses.

3. One way a bank tries to ensure it is protected from bad loans is by setting aside
money as a 'provision'. This money cannot be used for any other purposes including
lending. As a result, banks have lower capital available to use for its various
operations. The Capital Adequacy Ratio measures how much capital a bank has.
When this falls, the bank has to borrow money or use depositors' money to lend.
This money, however, is riskier and costlier than the bank's own capital.

4. The healthier public sector banks could have raised private capital by issuing deep
discount rights in 2013, and some can still do so now,” the RBI deputy governor
said. This could help share the government’s burden, he added. This option also
 offers another benefit—private investors tend to improve the quality of a business.
This could keep banks in check and avoid future problems.

5. The system will be better off if they (banks) are consolidated into fewer but healthier
banks,” Viral Acharya said. This can also throw up opportunities to rejig the
managements of these banks. Mergers can help evaluate performances of those in
the management. So those who have underperformed could be taken off the key
positions. This can help improve the quality of business and banking services
offered. Also, mergers can help cut costs and change the workforce. “Voluntary
retirement schemes (VRS) can be offered to manage headcount and usher in a
younger, digitally-savvy talent pool into these banks,” the RBI deputy governor said.

6. Public-sector banks are seeing more employees retire these days. So, younger
employees are replacing the elder, more-experienced employees. This, however,
happens at junior levels. As a result, there would be a virtual vacuum at the middle
and senior level. 
7. The absence of middle management could lead to adverse impact on banks' decision
making process as this segment of officers played a critical role in translating the top
management's strategy into workable action plans," the deputy governor said.
Moreover, banks - especially government-owned banks - need to embrace
technology to offer better products. This will also help make banks more efficient.
8. In the past few years, many banks have tried to delay setting aside money as
provisions (for future bad loans). One reason for this is that a bank's chief executives
have a short tenure, during which time they want to post higher net profits and cheer
investors. "It must be appreciated that CEOs/ CMDs would come and go but the
institutions are perpetual entities.
9. Nothing matters more to an investor than a company’s profits. But you often need to
go beyond the final profit numbers to gauge the actual profitability. It can so happen
that a company posts great profits for a short term, but is unable to do so
consistently. This means its business model is not profitable. Some common
profitability ratios are Profit Margins, Return on Equity (RoE), Return on
Investments (RoI), Return on Assets (RoA), and so on.

10. A company’s profit depends on two factors- revenue and cost. It is important that
companies minimize cost as much as possible to maximize profits. When a company
does this, it is being efficient. There are many financial ratios which gauge this
operational efficiency by comparing various costs with revenue and profits or
understanding the time taken to produce goods or sell ready products. Some even
measure the time taken by clients to pay money or the payment cycle for suppliers.
These need to be looked at together. One single ratio cannot give the whole picture.
Efficiency ratios include the Operating Expense Ratio, Inventory Turnover,
Accounts Receivable Turnover, Total Asset Turnover and Accounts Payable
Turnover.
 SWOT ANALYSIS OF KOTAK MAHINDRA BANK

1) STRENGHTS:
 Innovative financial product of diverse categories.
 Kotak Mahindra Finance Ltd.is the first company in the Indian banking to convert into
a bank.
 Of, For, By the customers.
 Has over 20,000 employees.
 Customer account base of over 2.7 million.

2)WEAKNESSES:

 Low publicity and marketing are as compared to other premium banks in the
urban area.

3)OPPORTUNITIES:

 Explore opportunities abroad by International banking.

 Kotak has launched SPIRIT OF SERVICE campaign. Through this campaign it can
secure highest and higher level of CUSTOMER SATISFACTION, LOYALTY
ETC.

4)CHALLENGES:

 Heavy weights corporate like TATA & SONS, RELIVANCE CAPITAL, L& T,
ADITYA BIRALA, BAJAJA FINSARY, and MUTHOOT FINANCE are trying
very hard leaving no stone unturned to acquire banking license.
 Competitors:
 ICICI, SBI, AXIS, BOB, HSBC etc.
 Chapter-4

OUTCOME OF THE STUDY

OUTCOME OF THE STUDY

Banking services in India are included in the list of vital services. During the
lockdown and health crisis, banking and financial institutions were under
tremendous pressure to maintain business as usual. Banking transactions such as
cash deposits, withdrawals, cheque clearing, and other standard teller services have
to be carried out at a safe distance of at least one meter. A bank employee's attempt
to handle cheques with tongs and sanitize them with a steam iron went viral on
social media. When presented with an emergency crisis, the operational and
technical obstacles for both clients and employees revealed a flaw and a general lack
of agility in our financial systems. The immediate lessons learned from the current
COVID-19 scenario will provide the much-needed discipline to the bank's backend
operations. Within banks, this will decrease the reliance on manual input, person-led
reviews (i.e. paper), and employee intervention. When the COVID-19 issue has
passed, Indian banks [22] are likely to shift gears and move away from traditional
banking. Traditional banks will be able to leapfrog the adoption of cutting-edge
banking technologies and pave the way for digital transformation. Currently, 27
Indian public sector (PSU) banks are being consolidated into ten major banks. It is a
good opportunity for public utilities to look towards greater technology integration
and customer uptake. Other Indian banks (both public and private) that have already
gone online with some fundamental banking services will concentrate on completing
the transformation by digitizing all of their functions, processes, and systems. New
entrants and fintechs would be considered for partnership by legacy Indian banks
and financial institutions. Such necessity-driven alliances will spur innovation and
allow banks and fintechs to profit from each other's enormous client bases and new
technologies.

At the same time as the Covid-19 is causing yet another direct disruption in
industries including as travel, transportation, tourism, hospitality, and trade, the
government is attempting to merge 27 public sector banks (PSBs) into ten major
banks. Union Bank of India, Punjab National Bank, Indian Bank, and Canara Bank
are among the anchor institutions that are undergoing branch and personnel
rationalization, technological integration, and stressed loan strategy, among other
things.

Short Term Disruption in Indian Banking due to COVID-19 Pandemic

1. Lack of access to data/infrastructure, resulting in decreased serviceability.

2. A temporary adjustment in the valuation of financial instruments (FIs), with a
reduction in expected returns.
3. Access to branches for ordinary operations is difficult.
4. Non-payment of a loan
5. De-emphasizing non-essential processes
6. Significant decline in cross-border and domestic trade

Prolonged crisis in In Indian Banking due to COVID-19 Pandemic

1. The preference for distributed workforce shared services is growing.
2. Increasing the need for and preference for electronic transactions
3. Health and life insurance products are becoming increasingly popular.
4. Surplus capital accumulation due to limited deployment options
5. As a result of lower revenue and margins, there will be more loan defaulters.
 Chapter-5

EXPERIENCE, LEARNING
AND CONCLUSION
EXPERIENCE:

I think there should be a mix of different banks. All for different purposes.
Sometimes for mere savings, sometimes for other banking services, sometimes for
some premium banking services. Banks are providing a better credit facility while
Bank is a good for banking, small amounts loan. It is a backup which ensures that if
any bank/ATM has a problem I have options and is safe. Supposedly some happiness
in one account-like a password stolen etc. - it ensures that at least all my money
won’t be stolen. Due to pandemic UPI facilities became more popular.

Banks are at the centre of financial flows. With advanced risk management and
analytical capabilities, banks can become trusted advisors for their clients. They can
help companies see their data in new ways: spotting anomalies and uncovering
patterns that affect their business or by building integrated ecosystems of trusted
providers to connect different customers and foster growth opportunities. Latest
consumer financial research highlights that to truly connect with and gain the trust of
consumers in a fully digital world, banks must shadow the evolution of the online e-
commerce giants that have now built out entire connected ecosystem experiences
and value propositions. To create this, banks need a sophisticated understanding of
their customers’ context and needs.  Banks now have an opportunity, as they
enhance their digital capabilities to adapt during this crisis, to systematically collect
relevant data and create connected experiences. This will provide a more
personalized and intuitive relationship through all channels.

I tried my best to collect all the relevant information related to the project. I am very
privileged and over whelmed work on this mini-project. It helps me in gathering the
information about banking service. Although the data was collected from secondary
data sources due to the pandemic, it gives me in -depth knowledge about the topic. I
also realised why people using a banking service in India.

LEARNING:

The impact of the pandemic on global and domestic economic conditions was, to an
extent, moderated by a combination of unprecedented macroeconomic and
regulatory policy support. As the global economy recovers, however, it remains
uneven and divergent, warranting sustained policy support. A hastened pace and
ramped up scale of the vaccination drive and quick bridging of gaps in the healthcare
infrastructure across both urban and rural areas would make the recovery more
durable.

Domestically, the near-term growth outlook faces headwinds from supply side
constraints, surging global commodity prices, large swings in capital flows and
global spillovers from financial market volatility that is in turn contingent upon
policy stances of systemic economies. Hasty withdrawal of policy stimulus to
support growth before sufficient coverage of the vaccination drive can sap
macrofinancial resilience and have adverse unintended consequences.

Reduction in banks’ exposure to better rated borrowers and a somewhat uncertain

risk profile for their other investment grade obligors have visibly impacted
wholesale credit growth. Consumer credit demand, too, appears to have been dented
by the second wave of the pandemic. Going forward, close monitoring on asset
quality of MSME and retail portfolios of banks is warranted. This calls for banks to
shore up capital positions while favourable market conditions prevail. The banking
sector will be required to specifically guard against adverse selection bias while
being alive to the credit demand from productive and viable sectors. In the most
optimistic scenario, the impact of the second wave should be contained within the
first quarter of the year, while frictional inflation pressures work their way out over
the first half of the year. Financial intermediaries need to internalise these
expectations into their outlook while staying on guard against potential balance sheet
stress with sufficient capital and liquidity buffers and appropriate governance
structures.

CONCLUSION:

The bank activities have been affected by the international spreads of COVID-19. In
recent months, the COVID-19 pandemic has wreaked havoc on every business on
the planet. As industries try to recover, new strategic efforts and increased planning
are required. The ongoing global impact of COVID-19 is posing many challenges to
banks and the financial services industry as a whole. The breakout of the COVID-19
epidemic has hit India's economy like a tonne of bricks. To handle these issues,
banks must continue to use technology and integrate flexibility into their
infrastructure. Banking services in India are included in the list of vital services.

During the lockdown and health crisis, banking and financial institutions were under
tremendous pressure to maintain business as usual. When presented with an
emergency crisis, the operational and technical obstacles for both clients and
employees revealed a flaw and a general lack of agility in our financial systems. We
sought to show a close look at the impact of pandemic covid-19 on the Indian
banking system in this article, as well as briefly analysing Indian banks' readiness to
assimilate covid-19 and its impact on the financial services sector. The immediate
lessons learned from the current COVID-19 scenario will add rigour to the bank's
backend operations, which are in desperate need of digitization and optimization.
Banking transactions such as cash deposits, withdrawals, check clearing, and other
standard teller services have to be carried out at a safe distance of at least a metre.
Indian banks (both public and private) that have already begun to digitise some
fundamental banking services will focus on completing the shift by digitising all of
their functions, procedures, and systems. Finally, we've covered the pandemic covid-
19 impact in the banking system in a nutshell.
The impact of the corona like epidemic on banks in India has left some banks to
struggle due to deposits, as loans are protected by deposits. The condition of private
banks may force customers to lend less, which may lead to poor liquidity. The RBI
has given a 3 month grace period to all banks due to corona which has brought some
relief from the rules governing bad credit recognition , but banks NPA have
increased. It is well known to the bankers that since the implementation of the
lockdown by the government of India on 25 March,2020 RBI has taken a lot of steps
in doing business in the banking sector. RBI has also relaxed the deadline for bad
credit rules due to corona and barred borrowers from paying dividends for the year
ended 31 march 2019. The situation of Banks has deteriorated due to the lockdown.
But now after withdrawing the lockdown it will take longer to return to normally.
 BIBLIOGRAPHY

Dr. Asif Perwej.2020, The Impact of Pandemic Covid-19 on the Indian Banking
System. Int J Recent Sci Res.

The Effect of Covid-19 in Indian Banking Sector:

Dr. Priyanka Bobade, Associate Professor,Dr. D.Y. Patil Vidyapeeth’s ,

Global Business School & Research Center, Tathwade, Pune

Major Effect of Pamdemic in Indian Banking System

Prof. Anu Alex,Assistant Professor, Dr. D.Y. Patil Vidyapeeth’s ,
Global Business School & Research Center, Tatwade , Pune

World Bank Group ( August 2020 : Banking Sector Performance During theCovid-
19 Crisis

Usability of Online Banking in India during COVID-19 Pandemic:

Mayank Jindal, Vijay Laxmi Sharma (2020)

Impact of the Covid-19 Pandemic on the Indian Retail Banking Sector:

Avil Saldanha, Kevin Nitin

Competition, capital growth and risk-taking in emerging markets: Policy
implications for banking sector stability during Covid-19 pandemic:

Miroslav Mateev, Muhammad Usman Tariq, Ahmed Sahyouni

Impact of Covid-19 Outbreak on Performance of Indian Banking Sector:

Ambrish Kumar Mishra, Archana Patel, Sarika Jain

WEBSITES

https://journals.plos.org/
https://journals.christuniversity.in 

https://www.researchgate.net 

https://media.neliti.com

https://en.wikipedia.org