Differentiating Adopters and Non-adopters of Smart Cards: Comparative Analysis of Public, Private and Foreign Sector Banks in India

2013 ◽  
Vol 38 (3) ◽  
pp. 67-78
Author(s):  
Kamalpreet Kaur ◽  
Mandeep Kaur
Keyword(s):  
Smart Card ◽  
Banking Sector ◽  
Smart Cards ◽  
Payment Systems ◽  
Progressive Development ◽  
Reserve Bank ◽  
Financing Pattern ◽  
Indian Banks ◽  
Asset Quality ◽  
Different Characteristics

Progressive development in the field of information technology (IT) has brought in remarkable changes in the products as well as methods of payment and settlement system in the banking sector. In India, various types of payment systems are functioning apart from the traditional payment systems where the instruments are physically exchanged and settled manually. Smart cards are a new form of retail payment instrument, installed to facilitate retail transactions through electronic means. In 1999, the Reserve Bank of India issued guidelines to the banks regarding introduction and usage of smart cards. Smart cards are currently being issued by several banks in India which have tied up with Financial Information Network and Operations Ltd. (FINO). The IDBI bank has introduced its smart card called MoneySmart; Corporation Bank has issued CorpSmart; and Bank of India has issued its e-purse cards. PNB, SBI, ABN Amro, ICICI Bank, Bank of Baroda and some other banks have also launched smart card-based banking solutions (Kaur & Kaur, 2008). The main objective of this study is to identify the factors that may vary between the adopters and the non-adopters of smart cards in Indian banks. Banks that have adopted the cards may have different characteristics from those that have not yet adopted the cards. In other words, with the exploration of various characteristics of the banks, the study tries to differentiate between the adopter and non-adopter categories of the banks regarding smart cards with respect to their profitability, size, competitive advantage, efficiency, asset quality, financing pattern, diversification, cost of operations, etc. The empirical results evidently reveal that the banks providing smart cards differ in their characteristics from that of the banks that have not yet adopted it. It shows that the banks that adopted smart cards are larger in size, more efficient, pay lesser wages, and have more industry advantage and thus, in terms of some characteristics, outperform the non-adopter banks.

A Smart Card Based Software System for Surgery Specialties

2017 ◽  
pp. 394-409
Author(s):  
Nektarios Konstantopoulos ◽  
Vasileios Syrimpeis ◽  
Vassilis Moulianitis ◽  
Ioannis Panaretou ◽  
Nikolaos Aspragathos ◽  
...  
Keyword(s):  
Clinical Practice ◽  
Smart Card ◽  
General Surgery ◽  
Low Cost ◽  
Smart Cards ◽  
Health Centers ◽  
Software System ◽  
Community Clinics ◽  
Architectural Model ◽  
Different Characteristics

This chapter presents a software system based on smart cards technology for recording, monitoring and studying patients of any surgery specialty (General Surgery, Orthopedics, Neurosurgery, etc.). The system is also suitable for the computerization of any surgery specialty clinic and the respective surgical material repositories. Dynamic customization functions adapt the system to the different characteristics of the surgery specialties. Special customization is involved concerning implantable materials. The .NET platform and Java Cards used for the development of the system and the architectural model of the system are designed towards satisfying the basic integration and interoperability issues. The developed system is “doctor-friendly” because it is based on classifications and knowledge grouping used in every day clinical practice provided from medical experts on the field but is not intended to be a complete Electronic Medical Record (EMR). The major scope of this effort is the development of a system that offers a fast and easy installable, low cost solution in health environments still immature in adopting solutions based exclusively on Informatics and is designed to be installed in small Private Medical Consulting Rooms to Community Clinics, Health Centers, Hospital Surgery Departments till Central Health Organizations.

Marketing of Banking Services in India

2017 ◽  
pp. 107-133
Author(s):  
Rakhi Arora
Keyword(s):  
Banking Sector ◽  
Technological Development ◽  
Banking System ◽  
Foreign Banks ◽  
Indian Society ◽  
Reserve Bank ◽  
Nationalised Banks ◽  
The Government ◽  
Indian Banks ◽  
Reserve Bank Of India

Banking sector plays an important role in Indian Financial Sector.It has a long history that has gone through various stages of development after Liberalization, Privatization, and Globalization (LPG) has taken place. The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. The scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934. The scheduled banks are further classified into: nationalised banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks, which are controlled and governed by Reserve Bank of India (Central Bank of India) and Ministry of Finance. In this era, the government has issued licenses to the new entrants to establish new banks to serve the Indian society. This chapter focuses on to show the various undergone phases of Indian banking system, growth of deposits and credits, technological development in Indian banking sector, services provided by the Indian banks, benefits and challenges faced by the Indian banks.

Investing Productively: The Banking Sector

New India ◽  
2020 ◽  
pp. 145-178
Author(s):  
Arvind Panagariya
Keyword(s):  
Public Sector ◽  
Detailed Analysis ◽  
Banking Sector ◽  
Public Sector Banks ◽  
Formal Economy ◽  
Reserve Bank ◽  
Private Banks ◽  
The Government ◽  
Public Money ◽  
Indian Banks

Banks collect savings by households via deposits and channel them to the most productive investors in the form of credit. What happens to bank credit has a determining impact on growth, especially in the formal economy. A key feature of Indian banks has been repeated episodes of accumulation of non-performing assets followed by their recapitalization by the government using public money. These episodes have been concentrated in public sector banks (PSBs), which continue to account for two-thirds of banking assets. This chapter offers a detailed analysis of these episodes and argues that it is time for the government to give serious thought to privatization of PSBs. PSBs are subject to regulation by both the government and the Reserve Bank of India (RBI), but RBI has limited powers over them. On average, private banks outdo PSBs along nearly all dimensions in terms of efficiency.

Structure, Conduct and Performance Analysis of Indian Commercial Banks

2016 ◽  
Vol 5 (2) ◽  
pp. 157-185 ◽  
Author(s):  
Ratna Barua ◽  
Malabika Roy ◽  
Ajitava Raychaudhuri
Keyword(s):  
Commercial Banks ◽  
Structural Changes ◽  
Banking Sector ◽  
Negative Relationship ◽  
Market Concentration ◽  
Jel Classification ◽  
And Performance ◽  
Indian Banks ◽  
Asset Quality ◽  
The Impact

The market structure, conducts and performance of the Indian banking sector have changed since the introduction of banking sector reforms. Slower economic growth, coupled with asset quality problems in recent years, has taken a toll on the overall health of the Indian banking sector. Higher statutory capital requirement under Basel III has posed another major challenge to the Indian banks. The purpose of the study is to examine the impact of structural changes and conduct of Indian commercial banks on their profitability in the paradigm of structure–conduct–performance (SCP) framework. Market concentration, bank-specific/macroeconomic variables have been considered as important determinants of the profitability. The regression results find a negative relationship between profitability and market concentration and reject SCP hypotheses. The study found that capitalization, credit risk, leverage and ownership structure are the most important determinants of the profitability of Indian banks. The study also found that financial crisis had no significant impact on the profitability of Indian banks. JEL Classification: C4, G21, G28, L19

scholarly journals Management of NPA via Capital Adequacy Norms: Its Effect Upon The Profile of Indian Banks and Credit Deposit Ratio

2016 ◽  
Vol 3 (1) ◽  
pp. 62
Author(s):  
Ramesh Chandra Das ◽  
Arun Kumar Patra ◽  
Utpal Das
Keyword(s):  
Banking Sector ◽  
Capital Adequacy ◽  
Foreign Banks ◽  
Committee Report ◽  
Reform Agenda ◽  
Significance Levels ◽  
Back Ground ◽  
Indian Banks ◽  
Bank Group ◽  
Asset Quality

<div><p>The reform agenda in the financial as well as banking sector in the Indian economy was not only in the target of achieving profitable banking business but also to reduce the magnitude of banking funds locked in the bad debt account so that, among others, the real delivery of credit (the credit-deposit ratio) rises in overall fronts. The Narasimham Committee Report in respect of reducing magnitude of non- performing assets has been framed in line with the Basel Norm regarding the asset quality of the banks where capital adequacy ratio has been fixed for different banks to achieve within different time periods. The present study, under such a back ground, has been structured to examine the profile of all Scheduled Commercial Banks in all ranges of CRAR over time in aggregate and bank group specific and to measure degree of correlation of NPA-Deposit ratio with CRAR trends and Credit-Deposit Ratio in all ranges of CRAR and their significance levels for the time period 1995-96 to 2009-2010. It has been observed that there has been variation across banks in following the guidelines of the reform committee. SBI group and foreign banks have been performing well in this respect. There has been rising trend of the proportions of banks in the above 10 per cent range of CRAR. The NPA/D ratio and C-D ratio have been observed to be positively and negatively correlated respectively for the first three ranges of CRAR and reverse in the above 10 per cent range. The correlation between the NPA/D ratio and C-D ratio is negative and significant.</p></div>

scholarly journals Characterization of Adopters and Non Adopters of Credit Cards in Indian Banking Industry

2017 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Kamalpreet Kaur ◽  
Mandeep Kaur
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Credit Cards ◽  
Recent Issue ◽  
Public Sector Banks ◽  
Time Period ◽  
Financing Pattern ◽  
Asset Quality ◽  
Delivery Channel

In Indian banking industry, plastic cards can be considered as one of the product as well as process innovation in which Credit Cards have gained prominence as a delivery channel for conducting banking transactions. The present study investigates the recent issue related to the launch of one of the innovation in plastic cards in Indian Banking Sector. The main objective of the study is to identify the characteristics of the banks which could have been affected with the adoption of Credit Cards. For this purpose, all the scheduled commercial banks (79 in number which consists of 27 Public Sector Banks, 23 Private Sector Banks and 29 Foreign Sector Banks) have been taken as sample. The whole sample of banks has been categorized into adopter and non adopter groups. The time period of the study is of 14 years i.e. from 2000 to 2013. Various Bank specific variables Viz. Age, Efficiency, Size, Asset Quality, Profitability, Diversification, Capitalisation, Cost of Operations, Financing Pattern, Liquidity and Industry Advantage have been taken into consideration which may help to demarcate adopters and non adopters. It has been concluded that the initiators and adopters take advantage over the non adopter ones and thus former have found to perform better in terms of various parameters. Overall, the adopter banks are larger in size, older in age, more profitable, having lesser branches, more market share and more liquid as compare to late adopter ones.

Ballooning Non-Performing Assets in Indian Banking and Insolvency and Bankruptcy Code

2019 ◽  
Vol 6 (1) ◽  
pp. 1-24
Author(s):  
Deepak Tandon ◽  
Neelam Tandon
Keyword(s):  
Banking Sector ◽  
Data Driven ◽  
Slow Pace ◽  
Prompt Corrective Action ◽  
Potential Losses ◽  
Bankruptcy Code ◽  
To Come ◽  
Indian Banks ◽  
The Times ◽  
Asset Quality

The Indian Banking sector is witnessing a phenomenal deterioration of asset quality, raising potential losses for not making enough provisions or setting aside capital to combat the non-performing assets. The aftermath of this is that the sustainability of robust banking is becoming a big question. Over the period of time, NPAs and bad loans have adding to a spiralling manner in Indian Banks. In this data-driven banking, various frauds have occurred due to lapses in operational risk, and non-adherence to procedures. Despite the treatment of stressed assets, prompt corrective action as per asset quality report by regulators but results are appearing at a very slow pace. Strength and sustainability of the credit growth is the need for robust banking in the times to come.

Net Interest Margins of Banks in India

2019 ◽  
Vol 13 (2) ◽  
pp. 192-207
Author(s):  
S. S. Barik ◽  
Nishita Raje
Keyword(s):  
Banking Sector ◽  
Positive Influence ◽  
Jel Classification ◽  
Operating Costs ◽  
System Level ◽  
Net Interest Margin ◽  
Main Determinants ◽  
Indian Banks ◽  
Asset Quality ◽  
The Impact

Net interest margin (NIM) is the raison d’être of banking. It is an important measure of efficacy of the banking sector. At the system level, it is indicative of the cost of financial intermediation, health of the banking sector and its pricing power. In recent years, the Indian banking sector has experienced a major metamorphosis, with increasing competition and changing norms of liquidity, income recognition and capital. The end of regulatory forbearance and asset quality review (AQR) unearthed significant non-performing assets. This article traces the influence of various factors on the NIM, using bank-level data for 42 Indian banks over 25 quarters from March 2011 to March 2017. The study employs a dynamic panel generalised method of moments (GMM) framework to trace the impact of three distinct set of factors in setting banks’ NIMs: bank-level factors (like the share of low interest-bearing deposits held, the extent of gross non-performing assets [GNPAs], the capital-to-risk weighted assets ratio [CRAR], size of the loan book, operating costs and lending rates); system-level factors such as the monetary policy rate, credit growth and yields on government securities and macro-variables such as GDP growth and inflation. The results indicate that the main determinants of NIMs are banks’ CRAR levels, the proportion of current account and savings account deposits (CASA) to total deposits, operating costs and size of the loan book. Macro-factors like the growth of the economy and repo rate have a positive influence on the NIM. JEL Classification: C23, E43, G21

scholarly journals LOAN MORATORIUM 2020- ITS IMPACT ON INDIAN BANKS

2020 ◽  
Vol 4 (2) ◽  
pp. 1-14
Author(s):  
Meera Mehta ◽  
Rishab Kaul
Keyword(s):  
United States ◽  
Banking Sector ◽  
The United States ◽  
Jel Classification ◽  
The Troubles ◽  
Reserve Bank ◽  
Temporary Suspension ◽  
The Government ◽  
Indian Banks ◽  
Reserve Bank Of India

A moratorium is a temporary suspension of an activity or law until further consideration calls for a lift on the suspension, as in the case of the issues that led to the moratorium are resolved. Moratoriums may be imposed by regulators, by a business, or by the government. A moratorium is often ordered in response to situations of crisis. Moratoriums are not new to the Indian banking sector and have been granted and imposed in multiple instances in the last 20 years. Since 1999 moratoriums have been imposed on 9 banks for various reasons. Very recently, the Reserve Bank of India (RBI) offered a six-month moratorium between March 1, 2020, and August 31, 2020, on all loan equated monthly instalments (EMIs) to help lessen the troubles faced by borrowers due to the COVID-19 pandemic. This paper aims to study the recently granted moratorium by the RBI to assess and predict its impact on the banking sector. The study will also reflect on similar instances of moratoriums that have been granted in the United States, Greece, and Thailand in the last 20 years. JEL Classification Codes: E5, E58, E59

STUDY OF CAMEL RATING SYSTEM IN BANKING SUPERVISION- A CASE STUDY OF NEPAL BANGLADESH BANK LTD

2018 ◽  
Vol 1 (3) ◽  
pp. 74-96
Author(s):  
Dr. S.U. Gawde ◽  
Prof.. Alekha Chandra Panda ◽  
Prof. Devyani Ingale
Keyword(s):  
Banking Sector ◽  
Capital Adequacy ◽  
Rating System ◽  
Financial Risks ◽  
Economic Activities ◽  
Effective Measure ◽  
Critical Elements ◽  
Financial Soundness ◽  
The Usa ◽  
Asset Quality

The banking sector  plays in important role in the country’s economy, acting as an intermediary to all industries. As the banking sector has a major impact on the economy as a whole. Performance evaluation of the banking sector is an effective measure and indicator to check the soundness of economic activities of an economy. Many methods are employed to analyse banking performance. One of the popular methods is the CAMELS framework, developed in the early 1970’s by federal regulators in the USA. The CAMELS rating system is based upon an evaluation of six critical elements of a financial institution’s operations: Capital adequacy, Asset quality, Management soundness, Earnings and profitability, Liquidity, and Sensitivity to market risk. Under this bank is required to enhance capital adequacy, strengthen asset quality, improve management, increase earnings, maintain liquidity, and reduce sensitivity to various financial risks. In the present study an attempt was made to evaluate the performance & financial soundness of NEPAL BANGLADESH BANK LTD using CAMEL approach. Quantitative parameters are computed and updated on a quarterly basis while in respect of the qualitative parameters the ratings / marks given at the time of previous on-site examination

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