Evolving Strategies for the Structuring of Working Capital Loans during Covid Times: An Analysis of Select Indian Private Sector Banks
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Predicting human behavior is a difficult task, yet bankers perform this regularly while sanctioning working capital loans, so that money advanced is recoverable. For this, they try to assess credit worthiness of clients based on past performance through financials and banking habits amongst other parameters. Clients also look at fees and instalment burden, duration of loan, etc. However, with the adverse impact of Covid pandemic on earning capacities, banks need to relook at the way they structure loans. This study suggests that customer-focused, risk-adjusted analysis should be undertaken to reduce non-performing assets and improve asset portfolio quality of banks.
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2013 ◽
Vol 1
(1)
◽
pp. 100
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