Basel disclosure by private and public sector banks in India: assessment and implications

2016 ◽  
Vol 24 (4) ◽  
pp. 453-472
Author(s):  
Prodyot Samanta ◽  
Mohinder Dugal
Keyword(s):  
Public Sector ◽  
Operational Risk ◽  
Banking Regulation ◽  
Capital Adequacy ◽  
Regulatory Regime ◽  
Exploratory Research ◽  
Risk Disclosure ◽  
Content Type ◽  
Public Sector Banks ◽  
Private And Public

Purpose The aim of this paper is to assess the nature and characteristics of regulatory risk management reporting by private and public sector banks in India. Design/methodology/approach Using a sample of 38 banks, a content analysis of their Basel II disclosure reports for the year 2012-2013 is examined. Findings The assessment shows that while the majority of the disclosure across banks focuses on credit risk and capital adequacy ratios, the total quantity of disclosure varies significantly across banks. Of the three broad risk categories (market, credit and operational), operational risk disclosure is the least, with minimal to no disclosure on several key aspects of operational risk, suggesting that operational risk issues are likely to emerge as an area of concern among Indian banks. Further, for the sector as a whole, the authors observe that asset size and net income are positively correlated with the quantity of regulatory disclosure and negatively correlated with the variation of this disclosure, suggesting a possible precautionary behavior on the part of larger and more profitable banks toward excessive scrutiny by the regulators and a regulatory regime in which no institution is too big to fail. Originality/value As an exploratory research article to address the characteristics of regulatory disclosure of private and public sector banks in India, it is informative, particularly for those working in the area of banking regulation and compliance. Areas for further research are suggested.

Impact of service quality on customer satisfaction in private and public sector banks

2016 ◽  
Vol 34 (5) ◽  
pp. 606-622 ◽  
Author(s):  
Justin Paul ◽  
Arun Mittal ◽  
Garima Srivastav
Keyword(s):  
Public Sector ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Private Sector ◽  
Content Type ◽  
Negatively Associated ◽  
Public Sector Banks ◽  
Private And Public ◽  
The Right ◽  
The Impact

Purpose – In today’s world, with increased competition, service quality has become one of the most popular areas of academic investigation. The purpose of this paper is to examine the impact of various service quality variables on the overall satisfaction of customers and compare the private and public sector banks using a sample from India. Design/methodology/approach – With the help of forward stepwise regression, the authors explain how a variety of variables are both negatively and positively influencing customer satisfaction. The authors collected data from 500 respondents in India; 250 of which were customers of private sector banks, and 250 of which were customers of public sector banks. The authors had a response rate of 65 percent. Findings – In the case of private sector banks, knowledge of products, response to need, solving questions, fast service, quick connection to the right person, and efforts to reduce queuing time were found to be the factors that are positively associated with overall satisfaction. Assistance to the customer, appearance, and follow up are negatively associated with customer satisfaction. On the other hand, in the case of public sector banks, knowledge of the product and fast service are the factors which are associated positively and appearance is the only factor that is negatively associated. Originality/value – The components of service quality that are positively associated are not the same in public sector banks as they are in private sector banks.

scholarly journals Camel Research of Selected Private and Public Sector Banks in India

2019 ◽  
Vol 8 (12) ◽  
pp. 1237-1248
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Capital Adequacy ◽  
Public Sector Banks ◽  
The People ◽  
Start Up ◽  
Private And Public ◽  
Financial Growth ◽  
Earning Quality ◽  
Asset Quality

Banks are the mainstay of any country’s economic development. The money is stored in the bank, wherein the people are risk free of keeping money at home, and whenever required can take their money. The banks also help for any business growth or any start up business. And to meet all this peoples’ requirement and even gain profits, banks sees their financial growth and analyze as what to be done to meet the requirements. Even the people should know, whether the bank in which they have gone on their money is stable and can give back their money back when needed or when the bank fails to shut down due to unavailability of assets or loss which cannot be reclaimed. This report examines the execution of certain private and public sector banks. Five banks from private sector viz. ICICI, HDFC, Axis, YES, Kotak Mahindra and five banks from public sector viz. SBI, PNB, BOB, UBI and Canara bank were chosen for this analysis. The data were collected for a period from 2012-2013 to 2016-2017 (5 years). CAMEL analysis (Capital adequacy, Asset quality, Management efficiency, Earning quality, and Liquidity) was applied towards assessing the performance. Based on CAMEL rating, HDFC & AXIS Bank are considered as performing above average; whereas PNB & Canara Bank is seen as below average. Thus, it could be concluded that in all the parameters of the CAMEL Model and its sub-parameters, the performance of the private sector is found to be better than the public sector. .

Indian corporations are unlikely to set up banks

2020 ◽  
Keyword(s):  
Public Sector ◽  
Central Bank ◽  
Banking System ◽  
Capital Adequacy ◽  
Content Type ◽  
Public Sector Banks ◽  
The Government ◽  
Set Up ◽  
Bad Debt

Significance The government and central bank are looking for ways to strengthen the country’s banking system, which is beset by low capital adequacy ratios (CARs) and rising non-performing assets (NPAs). India’s leading conglomerates are asset rich, and their profitability is growing. Impacts The RBI will come under pressure to increase regulation of private as well as public sector banks. Many state-owned banks will merge in a bid to reduce their bad debt. Small NBFCs will face a challenge to sustain liquidity.

Preparedness level of Indian public sector banks for implementation of Basel III

2019 ◽  
Vol 45 (2) ◽  
pp. 172-189 ◽  
Author(s):  
Krishan Boora ◽  
Kavita Jangra
Keyword(s):  
Public Sector ◽  
Management Practices ◽  
Implementation Process ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
Advanced Technology ◽  
Basel Iii ◽  
Content Type ◽  
Public Sector Banks ◽  
The Impact

PurposeThe purpose of this paper is to explore the preparation level of Indian public sector banks for the implementation of Basel III. It is mandatory for public sector banks in India to make adequate preparations to comply with the Basel III international regulations.Design/methodology/approachThis study uses a modified questionnaire (Ernst & Young, 2013; AL-Tamimiet al., 2016) to examine the preparedness level of Indian public sector banks for implementing Basel III. Seven hypotheses are developed and tested.FindingsThe results show that Indian public sector banks are positively inclined toward Basel III, and the awareness level of Indian banks’ managers is adequate concerning Basel III. The banks have required resources for the proper implementation of Basel III, which is a prerequisite for its implementation. Banks know about the expected benefits that can be attained from implementing Basel III appropriately and banks are also aware of the high cost attached with Basel III. The capital adequacy ratio of public sector banks is above 11 percent, showing the banks’ readiness for Basel III.Practical implicationsThe public sector banks need to concentrate on revising the existing policies to sharpen their risk management practices. Moreover, improving the level of education on Basel III is still required and the results also support the importance of advanced technology and trained human resources at all level as a basic requirement for the implementation of Basel III. It can be achieved by the support of government, Reserve Bank of India (RBI) and other concerned agencies. The enforcement of Basel III will also create various challenges for Indian public sector banks, in terms of declining profitability, increasing capital requirements and nonperforming assets. That is why the impact of Basel III norms on Indian public sector banks cannot be undervalued.Originality/valueThe findings would assist the Indian public sector banks to know about their preparedness level for Basel III and what are the necessary actions to encourage Basel III implementation process. The present study would be important for regulators and decision makers in banks, as the main purpose of this study is to increase their awareness of Basel III norms. The result would also help the regulators regarding the corrective measures that should be taken by RBI in order to motivate the banks for enforcing Basel III.

scholarly journals How far the Indian banking sectors are efficient?: An empirical investigation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sudarshan Maity ◽  
Tarak Nath Sahu
Keyword(s):  
Public Sector ◽  
Foreign Banks ◽  
Data Envelopment ◽  
Content Type ◽  
The Public ◽  
Public Sector Banks ◽  
Economy Running ◽  
Significant Difference ◽  
Private And Public

PurposeBank mobilizes savings and transforms it into credit for investments in various sectors, which helps the economy running. The purpose of this paper is to examine the efficiency of three bank groups in India with data spanning from 2009–2010 to 2018–2019.Design/methodology/approachThe study uses data envelopment analysis for measuring the efficiency of the selected banks. It measures the efficiency both from the revenue dimension and from the supply-side dimension of financial inclusion.FindingsThe study finds that foreign banks on average are working efficiently far better than the public-sector and private-sector banks. It indicates that foreign banks in India are operating at 92.53% efficiency level, whereas private- and public-sector banks are operating at 90.20 and 86.04% efficiency levels, respectively. Further, the result of the Friedman test reveals that there is no significant difference in efficiency scores amongst these three bank groups. As major challenges, non-performing assets of the banking industry to be reduced by 15% as radial and 53.18% as slack.Originality/valueOne of the notable innovativeness of this study is that, unlike most of the previous studies that are mostly selected few banks and specific group, the present study may place itself as a unique inquiry in the domain of technical efficiency in macro concept by considering three major bank groups operating in India. An important contribution of the study is the classification of reasons behind the inefficiency, i.e. managerial or inappropriate scale size and further projections of input factors for the same level of output.

Service Quality Perception towards E-CRM Practices among Customers of Private and Public Sector Banks of Rajasthan Using SERVQUAL Method

2018 ◽  
Vol 7 (3) ◽  
pp. 22
Author(s):  
Neeti Kasliwal ◽  
Jagriti Singh
Keyword(s):  
Public Sector ◽  
Service Quality ◽  
Banking Sector ◽  
Sampling Technique ◽  
Vital Role ◽  
Public Sector Banks ◽  
Significant Difference ◽  
Private And Public ◽  
Score Method ◽  
Public Banks

Banking sector is growing rapidly and playing a vital role in the economic development of the nation. Both private and public sector banks are giving more priority to service quality to satisfy their customers. For this, banks are now emphasizing on E-CRM practices to carry out transactions and communicate with their customers. The purpose of this research is to assess the service quality among private and public banks in Rajasthan. Purposive sampling technique has been employed to collect the data from three private banks and three banks from public. To analyze the data, descriptive statistics, Mean score method and t test have been used. Results indicates that there is a significant difference in consumer’s perception of service quality dimensions related to E-CRM practices provided by selected private and public sector banks of Rajasthan..The findings of this research will help policy makers of banking sector to set customer oriented policies.

Analysis of Financial Performance of Public Sector Banks in India: CAMEL

2020 ◽  
pp. 097674792096686
Author(s):  
Yudhvir Singh ◽  
Ram Milan
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Positive Impact ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Factors Affecting ◽  
Public Sector Banks ◽  
The Government ◽  
And Performance ◽  
Asset Quality

Public sector banks have been merged by the government in the last few years. This is the rationale behind conducting this study. The purpose of this article is to determine the factors affecting the performance of public sector banks in India and the interrelationship between bank-specific determinants and performance of public sector banks. In this article, we shall analyse the financial data of all the public sector commercial banks for a period spread across 11 years (2009–2019); Capital adequacy, Assets quality, Management efficiency, Earning, and Liquidity (CAMEL) has been used as a performance determinant; system generalised method of moments (GMM) analysis has been used to find the effect of determinants on the performance measurement of public sector banks; and CCA (canonical correlation analysis) has been used to find the interrelationship between the bank-specific determinants and the performance of public sector banks. The finding has important implications in terms of performance in the banking sector. Certain limitations of this study are: It is based on secondary data. The study only covers the financial aspects and not the non-financial aspects. It is found that the asset quality is negatively related with performance of public sector banks. Liquidity and inflation are inversely related to performance of public sector banks in India. Capital adequacy is positively related with banks’ performance, but inversely related with banks’ interest margin. GDP growth has a significant positive impact on banks’ performance, but inversely related with banks’ interest income. Inflation rate is inversely related with banks’ performance. Banking sector reforms are insignificantly related with banks’ performance.

The impact of perceived service quality dimensions on customer satisfaction

2017 ◽  
Vol 35 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Rishi Kant ◽  
Deepak Jaiswal
Keyword(s):  
Public Sector ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Corporate Image ◽  
Content Type ◽  
Perceived Service Quality ◽  
Public Sector Banks ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
The Impact

Purpose In the present competitive scenario in the Indian banking industry, service quality has become one of the most important facets of interest to academic researchers. The purpose of this paper is to determine the dimensions of perceived service quality and investigate their impact on customer satisfaction in the Indian banking context, with special reference to selected public sector banks in India. Design/methodology/approach On the basis of the empirical study, the authors validate a measurement model using structural equation modeling for investigating the impact of perceived service quality dimensions on customer satisfaction. The study sample consists of 480 respondents in the National Capital Region (NCR) of India; the data were collected through a structured questionnaire utilizing a seven-point Likert scale while implementing a purposive sampling technique. Findings The perceived service quality dimensions identified were tangibility, reliability, assurance, responsiveness, empathy, and image. The empirical findings revealed that “responsiveness” was found to be the most significant predictor of customer satisfaction. On the other hand, “image” (corporate image) has a positive but the least significant relationship with customer satisfaction followed by all other constructs. The exception is “reliability,” which is insignificantly related to customer satisfaction in Indian public sector banks. Research limitations/implications The study cannot be generalized in the context of Indian banking sectors, as it only focused on the public sector. The findings of this study suggest that the six dimensions of perceived service quality model are a suitable instrument for evaluating bank service quality for public banks in India. Therefore, bank managers can use this model to assess the bank service quality in the context of Indian public sector banks. Originality/value There is dearth of research focusing on corporate image as a dimension of perceived service quality and its effect on customer satisfaction in the Indian banking context. Furthermore, similar studies were rarely found in the Indian context, especially within the public banking sector. Hence, this paper attempts to accomplish the research gap by empirically testing the satisfaction level of a large sample of the population in NCR toward six dimensions of perceived service quality rendered by selected public sector banks in India.

Mergers in Indian public sector banks: can human resource practices ensure effective implementation of change?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richa Singh ◽  
Geetika Goel ◽  
Piyali Ghosh ◽  
Saitab Sinha
Keyword(s):  
Public Sector ◽  
Human Resource ◽  
Resistance To Change ◽  
Change Implementation ◽  
Empirical Examination ◽  
Content Type ◽  
Public Sector Banks ◽  
Hr Practices ◽  
Effective Change

PurposeThis study examines the link of effective change implementation (CIE) with select human resource (HR) practices and employees' resistance to change (RTC) amidst ongoing mergers in Indian public sector banks (PSBs). It also intends to highlight the role of RTC as a mediator in this mechanism.Design/methodology/approachThe authors used a structured questionnaire administered through a survey of employees of select PSBs that have undergone mergers. The hypothesized relationships were tested on 220 responses with structural equation modelling.FindingsTraining and communication of change as HR practices were found to have significant effects in implementing change. RTC fully mediated the relationship of training and CIE, and partially mediated the association of communication and CIE. Communication had a stronger influence on RTC than training. This finding upholds the importance of communication but also implies that training can reinforce effective communication of change and may not affect the implementation if not directed towards handling resistance.Practical implicationsThe significance of communication as a finding supports the theory of planned behaviour. The authors’ results also align with the social exchange theory and can be extended to the job demands-resources model. PSBs may plan for phase-wise training initiatives starting from the announcement till the end of a merger. PSBs also need to effectively communicate all relevant HR issues to employees, thus being transparent and fair. Both online and offline modes of communication can be explored. Overall, the senior management has to imbibe the handholding of employees in the short term and a sense of empathy in the longer term.Originality/valueResearch on HR in Indian banking mergers seems to take a back seat vis-à-vis strategic issues and financial performance. There also is a limited empirical examination of the role of HR practices in effective change implementation. This paper addresses both these issues by proposing a conceptual model and empirically validating it amidst the merger of PSBs. The authors also highlight how training and communication are effective in handling resistance to change.

Cost, revenue and profit efficiency analysis of Indian scheduled commercial banks

2017 ◽  
Vol 59 (3) ◽  
pp. 442-462 ◽  
Author(s):  
Megha Mahendru ◽  
Aparna Bhatia
Keyword(s):  
Public Sector ◽  
Commercial Banks ◽  
Empirical Work ◽  
Specific Reference ◽  
Profit Efficiency ◽  
Content Type ◽  
Output Synchronization ◽  
Efficiency Performance ◽  
Private And Public ◽  
The Cost

Purpose This paper aims to analyze the cost, revenue and profit efficiency performance of Indian scheduled commercial banks. The study also determines differences if any related to efficiency among banks on the basis of ownership pattern. Design/methodology/approach Cost, revenue and profit efficiency of banks is calculated by using the non-parametric approach, namely, data envelopment analysis. Further, the differences in the efficiency scores are examined by applying analysis of variance. Findings Indian scheduled commercial banks have not been able to maintain their input-output synchronization in terms of cost, revenue and profits in the year 2012-2013. Foreign sector banks have higher cost and profit efficiency as compared to their counterparts in private and public sector, whereas public sector banks are found to have been more revenue efficient. Originality/value With specific reference to India, less empirical work has been carried out with respect to cost, revenue and profit efficiency. None of the studies have evaluated the sector-wise performance of banks in terms of all three efficiency parameters.

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