War and Banking Challenges

During periods of geopolitical conflict, there is a possibility of fuel shortages arising in the domestic market, and in this very period, there is a risk of loans becoming non-performing assets (NPAs); therefore, increasing recovery becomes necessary. However, the cost of recovery also increases, so it is essential to implement fuel conservation and a dynamic recovery system. For this, five measures must be undertaken: digital and tele-media, skill mapping and geographic mapping of recovery officers, carpooling and limited use of shared vehicles, digital payment, decentralization of branches, and 'Bank Mitra.' In times of difficulty, these decisions will prove foundational in making the bank low-cost and high-tech in the future.

History bears witness that whenever a war-induced situation or geopolitical conflict arises at the global level, it directly impacts the supply of crude oil and fuel prices. During such crisis periods, there is a possibility of petrol-diesel shortages arising in the domestic market. Cooperative institutions primarily consist of small traders, the salaried class, and small businesses, whose loans are at greater risk of becoming non-performing assets (NPAs) during such crisis periods. Increasing recovery becomes necessary, but if the direct cost incurred for recovery increases, it deals a double blow to the bank's profitability. Therefore, it is essential to implement this fuel conservation and dynamic recovery model. In such times of emergency, it is equally necessary to conserve fuel in the national interest. Hence, it is the need of the hour for the recovery departments of cooperative institutions to urgently implement the following five path-breaking and practical measures to conserve petrol-diesel and increase efficiency....(To read more, open the Banco Anniversary Special Issue, May-June 2026)