Banks started reducing salary and cutting job due to effect of Covid-19

Corona virus hits profitability of Banking sector severely even some banks could not bear administrative expenses. As a result banks has started reduction of employees salary and cutting jobs as well. We have news that AB Bank Ltd. has already reduced salary of the employee by 3% to 5% and Mutual Trust Bank also thinking to do the same. 

Probable Corona Virus effect on Banks/Financial Institutions

1. Reduction of profit margin even some medium and week bank may start incurring loss

2. Sharp increase of Non Performing Loan as Corona Virus hits every sector of the business which leads borrowers non capable to serve the debt.

3. Banks/Financial Institution will face difficulties to bear operational expenses and will be compelled to reduce salary of the employees even may reduce employee as well.

4. May face liquidity crisis in near future.