COVID-19 fight | Retailers cite lack of support from banks: Survey

A recent survey conducted by the Retailers Association of India (RAI) among more than 300 retailers has revealed that they have received little or no financial support from banks to recover from the impact of the COVID-19 crisis when they needed it.

The survey suggests public sector banks (PSBs) have been comparatively more helpful than private banks.

While around 52 percent of respondents are satisfied with the financial support and services extended by PSBs during COVID-19, almost an equal percentage are dissatisfied with private banks.

"Retailers selling both essential and non-essential items have reported a 40 percent and 100 percent drop in sales, respectively, due to the COVID-19 situation. The closure of business over the past couple of months has resulted in loss of revenue, which has rendered some of them unable to pay salaries to their staff. The reluctance of banks, especially private banks, to come to their aid is unfortunate, and could hurt not only retailers but the banks themselves. Banks have made huge investments in the retail sector, and if the sector struggles to get back on its feet, a significant portion of that investment could turn into non-performing assets," said Kumar Rajagopalan, CEO, RAI.