Banks in India: A Balancing Act Between Profitability, Regulation and NPA

2021 ◽  
pp. 097226292110344
Author(s):  
Jagjeevan Kanoujiya ◽  
Venkata Mrudula Bhimavarapu ◽  
Shailesh Rastogi
Keyword(s):  
Risk Taking ◽  
Performance Measure ◽  
Bank Performance ◽  
Performance Expectations ◽  
Policy Makers ◽  
Holistic View ◽  
Basic Tenet ◽  
Regulatory Bodies ◽  
Indian Banks ◽  
Litmus Test

Banks are facing varied issues worldwide. The existing set of performance measures of banks lack a cohesive and concerted approach for adequate fulfilment of the purpose. This study proposes a holistic view of the bank performance, which includes profitability, risk-taking (non-performing asset [NPA]), and regulation. It has been observed that Indian banks fare miserably in this litmus test of comprehensive performance measure. The meanest of the expectation that NPA should be affected by the regulatory mechanism is found surprisingly missing in the Indian banks. The existing literature has not taken a holistic view of bank performance, and therefore, the findings of this study provide enough impetus to all the stakeholders of the banks to respond. Policy makers and regulatory bodies can redirect both the banking governance and regulation so that the basic tenet of comprehensive bank performance expectations, as raised in this study, are met reasonably.

Ethical Responsibilities of Brick and Mortar Retailers

Think India ◽  
2017 ◽  
Vol 20 (3) ◽  
pp. 10-20
Author(s):  
Bodh Raj Sharma
Keyword(s):  
Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Empirical Investigation ◽  
Ethical Responsibility ◽  
Policy Makers ◽  
Better Regulation ◽  
Brick And Mortar ◽  
Regulatory Bodies ◽  
Ethical Responsibilities

Retailers have ethical responsibilities in their dealings with different stakeholders. All the stakeholders have expectations from retailers and the retailers in obligation to fulfil their expectations in an ethical manner. Retailers have ethical responsibility towards customers, employees, suppliers, financers, competitors, government, and the community as a whole. In fact, some researchers have conceptualised responsibilities of retailers but the in-depth empirical investigation has not yet done. The study empirically examines the ethical responsibilities of brick and mortar retailers towards various stakeholders. The data were obtained from 200 retailers through a self-designed schedule. The exploratory factor analysis extracted ten factors out of various variables representing ethical responsibilities of retailers towards different stakeholders. The results indicate that brick and mortar retailers are moderately ethical towards various stakeholders. The present study will be highly beneficial for the researchers, retailers, customers, regulatory bodies and policy makers for new insights and better regulation.

scholarly journals Entrepreneurial Mindset and Performance of Small and Medium Scale Enterprises in Makurdi Metropolis, Benue State-Nigeria

2018 ◽  
Vol 6 (2) ◽  
pp. 124-146 ◽  
Author(s):  
Emmanuel Lubem Asenge ◽  
Hembadoon Sarah Diaka ◽  
Alexander Terna Soom
Keyword(s):  
Social Sciences ◽  
Risk Taking ◽  
Sampling Method ◽  
Critical Factor ◽  
Major Effect ◽  
Policy Makers ◽  
Medium Scale ◽  
Business Opportunities ◽  
And Performance ◽  
Selection Of

Many studies indicates that entrepreneurial mindset is a critical factor in the accumulation, evaluation and selection of the knowledge which can lead an individual into potential business opportunities thereby enhancing entrepreneurial outcomes such as firm performance. This study examined the effect of entrepreneurial mindset on the performance of small and medium scale enterprises in Benue State. The focus of the research was to measure the entrepreneurs’ mindset exhibited through innovativeness, creativity, business alertness and risk taking and how these attributes contributed to the performance of SMEs. The research focused on a population of 650 small and medium scale enterprises based in Makurdi metropolis. A questionnaire was used to collect data from a sample of 250 SMEs in Makurdi metropolis which were selected through stratified random sampling method. Collected data were analyzed using descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS). Correlation and multiple regression analysis were employed to analyse the data and test the hypotheses. The study revealed that innovativeness, creativity, business alertness and risk taking were significant in affecting performance of SMEs. The study concluded that entrepreneurial mindset or lack of it has a major effect on SMEs performance and if any economy is bended towards development and growth, it would have to embrace this concept. It recommended that all the policy makers and all stake holders should re-strategize and create forums that can promote entrepreneurial mindset among the existing and potential entrepreneurs.

Capital regulation, competition and risk-taking behavior of Indian banks in a simultaneous approach

2018 ◽  
Vol 44 (4) ◽  
pp. 459-477 ◽  
Author(s):  
Santi Gopal Maji ◽  
Preeti Hazarika
Keyword(s):  
Human Capital ◽  
Risk Taking ◽  
Value Added ◽  
Capital Adequacy ◽  
Bank Risk ◽  
Capital Regulation ◽  
Content Type ◽  
Risk Taking Behavior ◽  
Indian Banks ◽  
The Impact

Purpose The purpose of this paper is to investigate the association between capital regulation and risk-taking behavior of Indian banks after incorporating the influence of competition. Further, the study intends to enrich the existing literature by providing empirical evidence on the role of human resources in managing risk along with the influence of other bank specific and macroeconomic variables. Design/methodology/approach Secondary data on 39 listed Indian commercial banks are collected from “Capitaline Plus” corporate data database for a period of 15 years. Capital is measured by capital adequacy ratio as defined by the regulators, and two definitions of risk – credit risk and insolvency risk – are employed. Competition is measured by Herfindahl-Hirschman deposits index, concentration ratio and H-statistic. The value-added intellectual coefficient model is employed to compute human capital efficiency (HCE). Three-stage least squares technique in a simultaneous equation framework is used to estimate the coefficients. Findings The study finds that absolute level of regulatory capital and bank risk are positively associated, although the influence of capital on risk is not statistically significant. The influence of competition on risk is negative for all the models, which supports the “competition stability” view. The impact of human capital on bank risk is also negative for all cases. Practical implications The findings of the study are useful for the decision makers in several ways based on the inverse influence of competition and HCE on bank risk. Further, the observed positive association between capital and risk indicates that the capital regulation is not sufficient to enhance the stability in the banking sector. Originality/value This is the first study in the Indian context that incorporates the competition in the banking industry as an explanatory variable in the extant bank capital and risk relationship.

Government Information Sharing

2012 ◽  
pp. 23-55 ◽  
Author(s):  
Elsa Estevez ◽  
Pablo Fillottrani ◽  
Tomasz Janowski ◽  
Adegboyega Ojo
Keyword(s):  
Information Sharing ◽  
Government Information ◽  
Theoretical Frameworks ◽  
Policy Makers ◽  
Holistic View ◽  
Government Response ◽  
Related Information ◽  
Conceptual Clarity ◽  
One Stop ◽  
Abstraction Levels

Information sharing (IS) is a key capability required for one-stop and networked government, responding to a variety of intra-organizational, inter-organizational, or cross-national needs like sharing service-related information between parties involved in the delivery of seamless services, sharing information on available resources to enable whole-of-government response to emergencies, etc. Despite its importance, the IS capability is not common for governments due to various technical, organizational, cultural, and other barriers which are generally difficult to address by individual agencies. However, developing such capabilities is a challenging task which requires government-wide coordination, explicit policies and strategies, and concrete implementation frameworks. At the same time, reconciling existing theoretical frameworks with the IS practice can be difficult due to the differences in conceptions and abstraction levels. In order to address such difficulties, this chapter proposes a conceptual framework to guide the development of Government Information Sharing (GIS) policies, strategies, and implementations. By integrating theoretical frameworks and the GIS practice, the framework adopts a holistic view on the GIS problem, highlights the main areas for policy intervention, and provides policy makers and government managers with conceptual clarity on the GIS problem.

Country of Origin Effects

2017 ◽  
pp. 1434-1458
Author(s):  
Nick Clifton
Keyword(s):  
Country Of Origin ◽  
Future Research ◽  
Illustrative Case ◽  
City Branding ◽  
Policy Makers ◽  
Holistic View ◽  
International Context ◽  
Country Of Origin Effects ◽  
Origin Effects ◽  
Origin Effect

This chapter develops the concept of the county of origin effect, and explores how linkages between place and product may impact upon it. Country-of-origin research has tended to focus upon how geographical associations may assist the marketing of certain products (halo effects) and indeed protect brand images from negative place-based associations (shield effects). We seek to develop these ideas by investigating the existence of branding spillovers in the opposite direction i.e. from product to regional image. Thus we argue in favour of a more ‘holistic' view of country-of-origin effects. This is done using the illustrative case of Wales. The chapter then seeks to explore the resulting implications for city branding practitioners and policy-makers, and to speculate upon how the observed linkages between place and product can also lead to broader insights in terms of city branding in the international context. Finally how the findings presented might contribute to future research attempts on city branding is considered.

Composite Indicators of a Knowledge Society

2017 ◽  
pp. 72-97
Author(s):  
Norsiah Abdul Hamid ◽  
Mohd Sobhi Ishak ◽  
Norhafezah Yusof ◽  
Halimah Badioze Zaman
Keyword(s):  
Factor Analysis ◽  
Knowledge Society ◽  
Structured Interview ◽  
Composite Indicators ◽  
Structured Interviews ◽  
Policy Makers ◽  
Holistic View ◽  
Confirmatory Factor ◽  
Different Dimensions ◽  
Future Policy

The concept of Knowledge Society (KS) began due to recognition of the importance of knowledge and information in the development of a society. This chapter proposes a holistic view of knowledge society based on the development of composite indicators in nine different dimensions. The objective of the study is to propose a multi-dimensional approach comprising human capital, ICT, spirituality, economy, social, institutional and sustainability as determinants towards achieving a KS. These dimensions are discussed in-depth by the experts in semi-structured interviews and also validated by using Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA). The semi-structured interview data are presented in a verbatim manner so as to provide readers with in-depth feedback from the experts, while the EFA and CFA results of composite indicators are presented in graphics. Thus, this chapter contributes to the understanding of composite indicators of a knowledge society which can then be used by policy makers for future policy-making decision.

ENTREPRENEURIAL ORIENTATION, PERFORMANCE AND THE MODERATING ROLE OF INSTITUTIONAL CAPITAL: A CASE STUDY OF FEMALE ENTREPRENEURS IN THAILAND

2019 ◽  
Vol 24 (02) ◽  
pp. 1950008
Author(s):  
CHONNATCHA KUNGWANSUPAPHAN ◽  
JIBON KUMAR SHARMA LEIHAOTHABAM
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Female Entrepreneurs ◽  
Policy Makers ◽  
Institutional Capital ◽  
The Relationship ◽  
Moderating Role

This study examines the relationship between entrepreneurial orientation of female entrepreneurs and business performance, and analyzes the moderating role of institutional capital on the entrepreneurial orientation-performance link. The results of the study highlight the important role of entrepreneurial orientation, including proactiveness, innovativeness and risk-taking, in directing business performance of female entrepreneurs and the complex interplay among entrepreneurial orientation variables. It also indicates that accessibility to institutional capital, through regulative, cognitive and normative dimensions, encourages female entrepreneurs to be more entrepreneurially oriented, thus leading to better business performance. In addition, this research proposes an integrated framework to guide policy makers on how institutional capital can play a crucial role in helping female entrepreneurs, stressing the importance of becoming entrepreneurial oriented and thus, achieving superior business performance.

scholarly journals Risk-taking behavior, earnings quality, and bank performance: A profit frontier approach

2020 ◽  
Vol 23 (4) ◽  
pp. 285-304
Author(s):  
M. Pilar García-Alcober ◽  
Diego Prior ◽  
Emili Tortosa-Ausina ◽  
Manuel Illueca
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Risk Taking ◽  
Banking System ◽  
Jel Classification ◽  
Bank Risk ◽  
Bank Performance ◽  
Bank Efficiency ◽  
Savings Banks ◽  
Risk Taking Behavior

After the financial crisis of 2007–2008, some bank performance dimensions have been the subject of debate, two of which are bank efficiency and bank risk-taking behavior. The literature on bank efficiency and productivity has grown considerably over the past three decades, and has gained momentum in the aftermath of the financial crisis. Interest in bank risk-taking behavior, usually focusing on its links to monetary policy, has been relatively low, but has also increased exponentially in more recent years. This article combines these two streams of research. Specifically, we test whether more inefficient banks take greater risks when selecting borrowers, charging interests, and requiring collateral, and whether these links between inefficiency and risk change according to the type of bank. Our analysis centers on the Spanish banking system, which has been severely affected by the burst of the housing bubble and has undergone substantial restructuring. To test our hypotheses, we created a database with information on banks and savings banks, their borrowers (non-financial firms), and the links between them. The study also contributes to the literature by considering a novel profit frontier approach. Our results suggest that more inefficient banks take greater risks in selecting their borrowers, and that this high-taking behavior is not offset by higher interest rates. JEL CLASSIFICATION C14; C61; G21; L50

scholarly journals How Efficient Are Indian Banks in Managing the Risk-Return Trade-Off? An Empirical Analysis

Risks ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 135
Author(s):  
Jalaludeen Navas ◽  
Periyasamy Dhanavanthan ◽  
Daniel Lazar
Keyword(s):  
Risk Taking ◽  
Stochastic Frontier ◽  
Primary Objective ◽  
Lower Efficiency ◽  
Insolvency Risk ◽  
Risk Return ◽  
Indian Context ◽  
Banking Business ◽  
Using Data ◽  
Indian Banks

Risk taking is an inherent element of the banking business. Banks make conscious decisions regarding risk taking as they expect to make more return if they take more risk. The primary objective of this study is to empirically investigate the efficiency of Indian banks in generating return relative to the risk they take. If the efficiency measurement is not adjusted for different risk preferences, then a bank earning lower return at lower risk may be misclassified as less efficient compared to peers earning the same level of return, but operating at a higher level of risk. This paper uses measures of liquidity risk, credit risk, market risk, and insolvency risk to develop a risk-return stochastic frontier in order to examine the risk efficiency of banks, a novel attempt in the Indian context. The paper further analyzes the efficiency of banks with respect to bank specific characteristics and risk management regimes. The models are estimated using data from a sample of 47 major banks for the period 2009–2018. The study reveals that Indian banks, on average, exhibited lower efficiency in trading risk against return during the sample period.

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