Sanjiv Anand, Chairman, Cedar Management Consulting International

The Covid-19 pandemic has created unprecedented challenges for banks, severely impacting profitability, asset quality, liquidity, fee income and customer behavior across retail, SME, corporate and wealth segments. Falling interest rates, stressed sectors, rising NPAs, shrinking deposits and declining branch usage have disrupted traditional revenue and cost models, making “business as usual” untenable.

Yet, this crisis represents a once-in-a-lifetime opportunity for banks to accelerate digital transformation. Banks must rapidly reassess sector exposures, re-segment clients, strengthen workout and credit risk teams, redesign scorecards, and protect liability books. A sharp focus on digitizing transaction banking, especially for SMEs and corporates, is critical to retaining customers and unlocking value.

Digital channels, cloud, cybersecurity, automation, AI and FinTech partnerships can drive resilience, efficiency and customer engagement. Ultimately, banks must rethink their operating and cost models from the ground up, embracing zero-based budgeting and digital-first strategies. Those that act decisively can emerge stronger, while laggards risk losing relevance.