Banks are evaluating sector-specific opportunities in a bid to improve the credit flow in a pandemic affected economy, while balancing lending risks.

According to Arijit Basu, managing director of State Bank of India, certain sectors such as tourism, travel, hospitality, airlines and airports will face challenges even if the Covid-19 pandemic ends.

“My sense is that these industries will take a little longer to come out. Exposures that the banks have on these industries may need a little more forbearance or support and it could lead to some increase in stress or NPA. But any projection is a little premature,” said Basu at a webinar organised by the Bengal Chamber of Commerce on Friday.

He, however, said that certain industries such as power, infrastructure and steel are already becoming functional and there would be more demand from these sectors in the coming months. Certain sectors have come into the spotlight such as pharmaceutical and healthcare.

“The job of the bankers is to identify the opportunities and see how to support these industries at this stage,” Basu said.

Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank, said opportunities also exist in the retail, agriculture and rural infrastructure sectors, with small ticket exposures to borrowers in these segments.

“The bank's collection efficiency at micro credit level has increased to 73 per cent and we are seeing that people are actually paying back,” Ghosh said at the webinar.