Second wave poses increased risks for fragile recovery, banks: Fitch

Firm sees stress in MSME, retail loans

Fitch Ratings on Friday said the second COVID-19 wave poses increased risks for India’s fragile economic recovery and its banks. The rating agency expects a moderately worse environment for the Indian banking sector in 2021, but headwinds would intensify if rising infections and follow-up measures to contain the virus further affect business and economic activity. India’s active COVID-19 infections have been increasing at a rapid pace with new infections exceeding 1 lakh a day in early April.