Effect of bank-specific and governance-specific variables on the productivity and profitability of banks

2016 ◽  
Vol 65 (8) ◽  
pp. 1057-1074 ◽  
Author(s):  
Karam Pal Narwal ◽  
Shweta Pathneja
Keyword(s):  
Corporate Governance ◽  
Private Sector ◽  
Banking Sector ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Public And Private ◽  
Content Type ◽  
Performance Variables ◽  
And Performance ◽  
Public And Private Sector

Purpose The purpose of this paper is to analyze the effect of bank-related variables and corporate governance-related variables on the productivity and profitability of public and private sector banks in India. Design/methodology/approach The Malmquist productivity index is applied to determine the productivity of different banks. Further, return on average assets is used as profitability of banks. The regression analysis is further used to assess the effect of different bank-related and governance-related variables on performance of banks. Findings Nearly all the bank-specific variables explain the productivity and profitability of banks but a weak relationship is observed between individual governance variables and performance variables. Two governance variables, i.e. board meetings and remuneration explicate the profitability of the public sector banks and only duality explains the profitability of the private sector banks. No significance is found between productivity and governance variables. Originality/value The study addresses the embryonic issue of corporate governance in the banking sector. The uniqueness of the paper lies in that no study has evaluated the effect of these variables on productivity and profitability of banks simultaneously.

Brazil banks will stay cautious amid fragile recovery

2017 ◽  
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Retail Banking ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Risk Averse ◽  
Public And Private ◽  
Content Type ◽  
Private Banks ◽  
Public And Private Sector

Subject Outlook for the banking sector. Significance The two-year recession has made Brazil’s public- and private-sector banks increasingly risk-averse in their lending to households and companies. This is likely to persist in 2017, owing to a very uncertain and fragile economic recovery, high unemployment and elevated levels of private-sector debt. Impacts Less-aggressive lending by national state banks will help public finances and give private banks a chance to increase market share. Spanish Santander will be the only foreign bank capable of competing in Brazil’s retail banking segment in the coming years. Other foreign banks lacking the necessary scale for profitable retail banking will focus on other niches.

Measuring intellectual capital performance of Indian banks

2016 ◽  
Vol 42 (7) ◽  
pp. 635-655 ◽  
Author(s):  
Sukhdev Singh ◽  
Jasvinder Sidhu ◽  
Mahesh Joshi ◽  
Monika Kansal
Keyword(s):  
Private Sector ◽  
Intellectual Capital ◽  
Banking Sector ◽  
Value Added ◽  
Secondary Data ◽  
Equity Capital ◽  
Public And Private ◽  
Content Type ◽  
Indian Banks ◽  
Public And Private Sector

Purpose – The purpose of this paper is to measure the intellectual capital performance of Indian banks and established a relationship between intellectual capital and return on assets (ROA). The paper also compared the intellectual capital performance of public sector and private sector banks. Design/methodology/approach – This study is based on secondary data from the top 20 Indian banks. Ten banks were selected from each of the public and private sectors on the basis of paid-up equity capital. The analysis was made using the value added intellectual coefficient, the coefficient of variation, exponential growth rates, trend analysis, Yule’s coefficient, the coefficient of correlation, the F-test and the t-test. Findings – The study revealed that private sectors have performed relatively better regarding the creation of total information coefficient (IC). However, the ROA was still below the international benchmark of > 1 percent. The major cause of the lower IC and the reduced ROA is disproportionate to the increase in capital employed and escalating non-performing assets in the Indian banking sector. Practical implications – The study focussed on managers and identified the causes of lower performance. It proposed numerous strategies to improve the aggregate score of IC, which is closely related to bank profitability. Originality/value – This is the first study to make a comparative analysis of intellectual capital performance in public and private sector banks in India and in addition to the traditional style of measuring sectoral performance. Further, the study employed new statistical tools, such as Yule’s coefficient of association, to establish the association between performance variables.

Relationship between CSR motivations and corporate social performance: a study in the power industry in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Power Sector ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Self Interest ◽  
Public And Private Sector

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.

scholarly journals Customer Engagement with Social Media Bank Pages with Reference to Facebook

2019 ◽  
Vol 8 (2S11) ◽  
pp. 3089-3095
Keyword(s):  
Social Media ◽  
Public Sector ◽  
Private Sector ◽  
Banking Sector ◽  
Banking System ◽  
Customer Engagement ◽  
Public And Private ◽  
Public Sector Banks ◽  
Social Media Platforms ◽  
Public And Private Sector

Indian banking sector is going through a massive transformation day by day with the advancement of Information and communication Technology and impact of digitization in the banking industry. After the core banking system, banks have moved further to reap the benefits of internet and mobile banking. In order to engage more customers anywhere and anytime without visiting the brick and mortar branches, the banks have now introduced the social media banking. Most of the people are already active in different social media platforms, so banks have grabbed that opportunity to reach people easily and provide services through social media. This paper has made an attempt to analyze the engagement of social media customers in different banks including public and private sector with reference to facebook bank page. The results show that most of the banks have presence on popular social media platforms. With respect to the engagement of customer to all facebook posts during the study period, public sector banks are posting more on their respective facebook page but the customers’ likes as well as dislikes are more for SBI, ICICI and AXIS. In case of shares and comments, SBI and PNB have more and are increasing continuously as these two banks post more on their respective facebook pages. But with respect to customer engagement per facebook post during the study period, customers are engaged more with private sector banks. And it can be said that regarding overall customer engagement people are more engaged with private sector over public sector banks.

Changing Planes in Managing Human Resources in High Performing Indian Banking Organizations: Attract, Retain, and Motivate

2017 ◽  
Vol 18 (2) ◽  
pp. 60-83
Author(s):  
Prachi Bhatt
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Managerial Decision ◽  
Public And Private ◽  
High Performing ◽  
Hr Practices ◽  
Banking Organization ◽  
Public And Private Sector ◽  
The Right ◽  
Hr Function

Sensitive to change, human resource (HR) function plays a crucial role in dealing with globally competitive marketplace. Banking sector in a developing country like India is no different. There is an urgent need to revolutionize HR practices in Indian banking. This paper, as part of a larger research, studies high performing banking organizations in India and proposes a changing pattern of HR for the Indian banking organizations through the attract, retain, and motivate (ARM) framework. Further, the paper examines through exploratory factor analysis (EFA) whether and to what extent the changing pattern in HR practices in case of public and private sector banks supports the proposed conceptual framework. Thus, the paper presents empirical evidences (412 employee respondents) for the changing pattern of HR practices. The paper exhibits differences in the extent to which HR practices are changing in the public and private sector banks. Decisions to improve the HR priorities and practices can lay foundations for high- performing organizations. The paper examines an important issue for managerial decision-making in identifying the right blend of ARM to become high performing banking organization

Underlying values and competencies of public and private sector managers

2016 ◽  
Vol 5 (4) ◽  
pp. 371-387 ◽  
Author(s):  
Sean D. Darling ◽  
J. Barton Cunningham
Keyword(s):  
Decision Making ◽  
Public Sector ◽  
Private Sector ◽  
Critical Incident ◽  
Visionary Leadership ◽  
Political Environment ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Public And Private Sector

Purpose The purpose of this paper is to identify unique values and competencies linked to private and public sector environments. Design/methodology/approach This study is based on critical incident interviews with a sample of senior leaders who had experience in both the public and private sectors. Findings The findings illustrate distinct public and private sector relevant competencies that reflect the unique values of their organizations and the character of the organization’s environments. This paper suggests a range of distinct public sector competencies including: managing competing interests, managing the political environment, communicating in a political environment, interpersonal motivational skills, adding value for clients, and impact assessment in decision-making. These were very different than those identified as critical for the private sector environment: business acumen, visionary leadership, marketing communication, market acumen, interpersonal communication, client service, and timely and opportunistic decision-making. Private sector competencies reflect private sector environments where goals need to be specifically defined and implemented in a timely manner related to making a profit and surviving in a competitive environment. Public sector competencies are driven by environments exhibiting more complex and unresolvable problems and the need to respond to conflicting publics and serving the public good while surviving in a political environment. Originality/value A key message of this study is that competency frameworks need to be connected to the organization’s unique environments and the values that managers are seeking to achieve. This is particularly important for public organizations that have more complex and changing environments.

Antecedents of customer satisfaction: a study of Indian public and private sector banks

2013 ◽  
Vol 31 (3) ◽  
pp. 167-186 ◽  
Author(s):  
Vinita Kaura
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Private Sector ◽  
Positive Impact ◽  
Retail Banking ◽  
Employee Behavior ◽  
Public And Private ◽  
Content Type ◽  
Service Convenience ◽  
Public And Private Sector

PurposeThe purpose of this paper is to examine the effect of service quality, perceived price and fairness and service convenience on customer satisfaction. It also aims to compare multiple regression models between public and new private sector banks.Design/methodology/approachA cross‐sectional research on 445 retail banking customers through a questionnaire is conducted. The population of the study consists of valued retail urban customers of banks in Rajasthan, India, who frequently visit bank premises for transactions, have accounts in at least two banks and have availed of at least one information technology based services. Responses are analysed using regression analyses.FindingsDimensions of service quality are employee behavior, tangibility and information technology. Dimensions of service convenience are decision convenience, access convenience, transaction convenience, benefit convenience and post‐benefit convenience. For public sector banks, except tangibility, all antecedents have positive impact on customer satisfaction. For private sector banks except tangibility and benefit convenience all antecedents have positive impact on customer satisfaction. Significant difference in beta coefficient is found between public and private sector banks regarding employee behavior, decision convenience, access convenience and post‐benefit convenience.Research limitations/implicationsThis study has taken into account a specific category of retail banking customers. Thus, it limits generalization of results to other banking populations.Practical implicationsThis study highlights the importance of service quality, service convenience and price in satisfying customers. Bank managers can focus on these factors to satisfy customers.Originality/valueThe paper emphasizes the significance of service quality, price and SERVCON on customer satisfaction for Indian banking sector. It compares the multiple regression models for public and private sector banks.

scholarly journals Liquidity and Off-Balance Sheet Items: A Comparative Study of Public and Private Sector Banks in India

2017 ◽  
Vol 8 (1) ◽  
pp. 47 ◽  
Author(s):  
N. Pushkala ◽  
J. Mahamayi ◽  
K. A. Venkatesh
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Balance Sheet ◽  
Vital Role ◽  
Public And Private ◽  
Banking Business ◽  
Public And Private Sector ◽  
The Impact ◽  
Reserve Ratio ◽  
Of Greece

Liquidity is the life-line of every business. Banking business’ liquidity was the bone of contention during the economic crisis of Greece and the downfall of Finance Behemoth like Lehman Brothers. Banking Sector-Illiquidity was the epicentre of such crisis. Globally, the Off-Balance Sheet Exposure played a vital role in managing liquidity and solvency issues of commercial banks. This research paper explores the concepts, aspects, analysis of liquidity and the impact of Off-Balance Sheet Items on Liquidity and Solvency. Furthermore, this paper focuses on the liquidity aspects of Public and Private Sector banks towards scrutinizing whether the ownership has any influence on the liquidity and solvency aspects of the banking structure, under the backdrop of Off-Balance Sheet Exposure. Besides, it looks into the unpredictability of RBI’s policies on liquidity like Cash Reserve Ratio, Statutory Liquidity Ratio etc.

scholarly journals A Study on Customer Delight in Banking

2021 ◽  
Vol 11 (2) ◽  
pp. 1447-1465
Author(s):  
David Winster Praveenraj D
Keyword(s):  
Customer Satisfaction ◽  
Private Sector ◽  
Banking Sector ◽  
Technological Advancement ◽  
Public And Private ◽  
Descriptive Research ◽  
Level Of Satisfaction ◽  
Customer Delight ◽  
Public And Private Sector

The banking industry like other industries have its own competition, uncertainties, new technological advancement and changing market conditions. Customer Satisfaction is one of the key area’s banks have to focus if it wants to be attained long-term success. In this study we have examined the level of satisfaction of the customers towards the services rendered by public and private sector banks. The main aim of the study is to evaluate the determinants of Customer Satisfaction in Banking Sector. For this a descriptive research was carried out to analyse the data collected from 105 customers of both public and private sector banks. The inferences from the results depict the factors that are crucial for enhancing customer satisfaction. Based on the inference’s suggestions are given to help banks improve their service quality.

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