“Impact of Moratorium on Performance of Select Public and Private Sector Bank’s Asset Quality and Equity Stocks”

  • Mrs. Budampati, V. S. Sowmya


A bank is a financial entity that offers its clients deposit and credit options. The banking industry is critical to the growth of the Indian economy. As a result of financial sector changes that are being implemented in phases, Indian banks have been through a fascinating era of rapid development. A moratorium is a temporary halt to activity until future circumstances merit the suspension's lifting or until associated concerns are handled. The Reserve Bank of India (RBI) has approved a three-month suspension on term loan and credit card repayments as a relief gesture for those affected by the corona virus outbreak. Customers who choose this moratorium plan had their EMIs deferred by lending institutions. The main objective of the study is to figure out how the declaration of a moratorium would affect the asset quality and equity stocks of select public and private sector banks. The research is limited to explaining the performance of two public and two private sector banks, due to the declaration of the moratorium. Three Hypotheses are framed to attain the objectives and it is observed that moratorium has no effect on the asset quality of select public and private sector banks. The alternative theory is supported because the embargo has an effect on the equity stocks of select public and private sectorbanks.