COVID Pandemic: How much impact did the epidemic have on people’s savings, how did the change in borrowing come about?
Mumbai: Corona outbreak (COVID19 Pandemic) has hit the country’s economy hard. It also has an effect on people’s savings. Money-saving and spending are also having a big impact. Corona’s companionship has forced people to save. Because of the high cost of treatment on Corona, people are saving out of fear. It makes them feel more needed. According to SBI Research, a new trend of deposits and credits is emerging in the banking system from FY2021. This is the first time this has ever happened before.
This trend has changed since the Corona epidemic last year. The increase in deposits in the banking system has also led to an increase in credit. From the financial year 2021, the banking system is witnessing new trends in terms of deposits and credit. However, this was not usually the case before. Deposits and credit generally decline in April. The report was presented after research conducted under the chairmanship of Soumya Kanti Ghosh, Chief Financial Advisor, SBI Group. According to the report, deposits in the banking system reached Rs 1.50 lakh crore in April 2020.
This time too, for the first time in the country, a corona lockdown was imposed. If you look at the April 2019 figures, deposits fell by nearly Rs 90,000 crore. If you look at the deposit figures for the first month of the last financial year, you can see the negative growth. Now, if we look at the April figures for the fiscal year 2022, the deposits in the banking system have increased by Rs 1 lakh crore till April 9. It is clear from these statistics that people are saving more now. This use will have severe consequences. That is, if people prefer savings over spending, consumer demand will be affected.
Outbreaks appear to be exacerbated during this time
The trend of credit demand has also changed since the onset of the corona epidemic in the country. Credit demand has declined in April over the past two years. That is, due to the epidemic, the demand for credit has increased. This can be understood in the sense that the demand for credit from people to overcome the epidemic is increasing.
Vaccination will control epidemics
In her research report, Soumya Kanti Ghosh also discusses ways to control the epidemic. He says the epidemic has spread rapidly in rural areas. About half of the new cases are coming from rural areas. In such cases, the vaccination program needs to be accelerated to prevent this epidemic. More than 4 lakh new corona cases are coming in every day in the last few days. So far, 2.15 crore people have been infected. The death toll from corona in the country has also risen to more than 2.34 lakh.
The second wave of corona spread so dangerously that we had to seek the help of the world. Many countries in the world are providing medical oxygen or life-saving drugs in addition to money. Statistics from the last few days show that India alone accounts for about 45 per cent of the world’s total corona cases. The report makes it clear that speeding up the vaccination program is the only way to stop the epidemic. This must be done in mission mode.