Page 48 - The Indian EYE 010722

BUSINESS EYE JANUARY 07, 2022 | The Indian Eye 48

2021 was the year of economic recovery;

inflation and omicron may challenge 2022

On the domestic front, progress in vaccination has enabled the recovery to regain traction
after the debilitating second wave of the pandemic

Also, the gross non-performing
OUR BUREAU
asset (GNPA) ratio of scheduled
New Delhi commercial banks is likely to in-
crease to 9.5 per cent in September
he Ministry of Finance has said
India’s real GDP in has grown 2022 from 6.9 per cent in September
Tby 8.4 per cent, thereby recov- 2021 in a severe stress scenario, the
Reserve Bank of India (RBI) said
ering over 100 per cent of the pre-pan- on Wednesday.
demic output in the corresponding Emerging signs of stress in mi-
quarter of 2020. “India is among the cro, small and medium enterprises
few countries that have recorded four (MSME) as also in the microfinance
consecutive quarters of growth amid
Covid-19 (Q3, Q4 of FY21 and Q1, segment call for close monitoring
of these portfolios going forward, it
Q2 of FY22), reflecting the resilience said.
of the Indian economy,” the Finance Commodity prices, domestic in-
Ministry report added.
flation, equity price volatility, asset
quality deterioration, credit growth,
as per the official data, 19 and cyber disruptions were rated as

among 22 high-frequency indi- the major risks.
In the report the RBI noted that
cators (hfIs) in September, oc- the global recovery has been losing
tober and november crossed Opposition parties workers raise slogans during a protest against the rising inflation in the momentum in the second half of
2021, impacted by resurgence of in-
their pre-pandemic levels in the country in New Delhi (ANI) fections in several parts of the world,

corresponding months of 2019. stakes for success in hospitality to- losing momentum in the second supply disruptions and bottlenecks,
persistent inflationary pressures
“India has not only caught up day and in the post-pandemic future. half of 2021 in the face of resurfac- and shifts in monetary policy stanc-
But inflation and COVID-19
with its pre-pandemic output new variant Omicron pose major ing COVID-19 infections, the new es and actions across systemic ad-
variant Omicron, supply disruptions
vanced economy central banks as
of Q2, but is also expected to challenges to the Indian economy, and bottlenecks, elevated inflation- also some emerging market econo-
do so for the full year,” the re- the Reserve Bank of India (RBI) ary levels and shifts in monetary mies.
said on Wednesday.
On the domestic front, prog-
policy stances and actions across
port added. In the Reserve Bank’s latest Sys- advanced economies and emerging ress in vaccination has enabled the
temic Risk Survey (SRS), all broad market economies. recovery to regain traction after
The year 2021 has been a recov- categories of risks to the financial On the domestic front, prog- the debilitating second wave of the
ery year for the hotel sector across system - global; macroeconomic; ress in vaccination has enabled the pandemic, notwithstanding signs of
the world. All through the year, the financial market; institutional; and recovery to regain traction after slowing pace more recently; the cor-
sector has shown resilience by nav- general - were perceived as ‘medi- the debilitating second wave of the porate sector is gaining strength and
igating through uncertainty, adapt- um’ in magnitude, but risks arising pandemic, notwithstanding signs of bank credit growth is improving, the
ing to an ever-changing environ- on account of global and financial slowing pace more recently; the cor- report said.
ment, and persevering through the markets were rated higher than the porate sector is gaining strength and During April-October 2021, all
ups and downs on the rocky path to rest. “Commodity prices, domes- bank credit growth is improving. the deficit indicators of the central
recovery. tic inflation, equity price volatility, The Financial Stability Report government exhibited improvement
Technology adoption was mov- asset quality deterioration, credit (FSR) is published bi-annually and from their pre-pandemic levels. The
ing fast before the pandemic. As growth and cyber disruptions were includes contributions from all the borrowing programme has proceed-
much as operational efficiencies, a rated as the major risks,” according financial sector regulators. Accord- ed smoothly. The Indian corporate
host of new and added capabilities to the 24th issue of the Financial ingly, it reflects the collective as- sector has gained strength and resil-
has been key to touchless transac- Stability Report (FSR) released by sessment of the Sub Committee of ience through the pandemic and key
tions necessary for guest and staff the RBI. the Financial Stability and Develop- financial parameters of listed non-fi-
safety and safety compliance. These The central bank noted that the ment Council (FSDC-SC) on risks nancial private companies indicate
solutions increasingly are table global economic recovery has been to financial stability. improvement.

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