A Comparative Study of Non-performing Assets Using Non-parametric Test: Indian Scheduled Commercial Banks

2021 ◽  
pp. 097674792110278
Author(s):  
Bhabani Mishra ◽  
S. S. Rath
Keyword(s):  
Public Sector ◽  
Comparative Study ◽  
Commercial Banks ◽  
Foreign Banks ◽  
Parametric Test ◽  
Public Sector Banks ◽  
Significant Difference ◽  
The Individual ◽  
Asset Quality ◽  
Non Parametric

Galloping levels of impaired assets slowly destroy the economy by throwing it into a major financial crisis. The current article studies recent trends and compositions of stressed assets among 45 selected Indian commercial banks. The non-parametric test (Kruskal–Wallis) is applied to know whether there exists any difference in the movement of gross non-performing assets ratios and net non-performing assets ratios (NNPAs) among bank groups and individual banks. The group-wise comparative study shows that a significant difference exists in the movement of NNPA ratio only between foreign banks and public sector banks and between private banks and public sector banks. Significant differences also exist among the individual banks in foreign and private bank groups. The Games–Howell post-hoc test finds that some pairs of banks have significant differences. The current financial downswing attributed to pandemic has increased the chances of fraudulency and sporadic default events and enhanced the problem of bad loans. Amalgamations of State Bank of India with its associates in 2017 and Bank of Baroda with Dena Bank and Vijaya Bank in 2019 have shown falls in stressed assets that possibly foreshow the future furtherance in asset quality of other four anchor banks that are merged with six banks, with effect from April 2020. JEL Codes: G21, G34

scholarly journals An Assessment of Profitability and Efficiency of Commercial Banks in India

2018 ◽  
Vol 7 (2) ◽  
pp. 47-53
Author(s):  
Shradha H. Budhedeo
Keyword(s):  
Public Sector ◽  
Financial Crisis ◽  
Commercial Banks ◽  
Global Economy ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Foreign Banks ◽  
Public Sector Banks ◽  
The Face

Efficiency and stability of the banking sector is a pre-requisite to economic growth of the nation. The banking industry has undergone phenomenal transformation over the past six decades since independence. Banks have shifted from traditional methods of banking to newer modern systems. This has led to impressive growth of commercial banks in India. In the year 2007, financial crisis loomed over the global economy with severe adverse effects on many western economies. In comparison, India stood poised as the fastest growing emerging market economy in the face of turmoil and pessimism. Although India stood strong, many banks started witnessing a change in their growth path during the post global financial crisis period. The public sector banks witnessed major setbacks with decline in their financial performance. In this light, the objective of the study is defined; so as to determine the role of efficiency and profitability indicators on the performance of bank groups. The findings of the study reveal that foreign banks have shown outstanding profitability performance and excellent management efficiency. It is the private sector banks that have outperformed the competing bank groups in terms of earning efficiency. Public sector banks have lagged behind with deteriorating profitability and efficiencies during the analysis period.

scholarly journals Cost Efficiency Vis-à-Vis Revenue Efficiency Analysis of Indian Scheduled Commercial Banks in a Dynamic Environment

2021 ◽  
Vol 29 (02) ◽  
pp. 53-72
Author(s):  
Aparna Bhatia ◽  
◽  
Megha Mahendru ◽  
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Dynamic Environment ◽  
Public Sector Banks ◽  
Significant Difference ◽  
Cost Efficient ◽  
The Cost ◽  
Revenue Efficiency

The paper endeavours to analyze Cost Efficiency vis-à-visRevenue Efficiency of Scheduled Commercial Banks (SCBs) as well as across ownership in India. Data Envelopment Analysis (DEA) has been employed to calculate the efficiency scores of SCBs over five points of time i.e. 2000-01, 2004-05, 2008- 09, 2012-13 and 2016-17. The differences in the efficiency scores are examined by applying Analysis of Variance (ANOVA). The results of Cost and Revenue Efficiency of Indian Scheduled Commercial Banks highlight that the highest level of inefficiency subsist on the cost side as Scheduled Commercial Banks have higher Revenue Efficiency scores in comparison to Cost Efficiency scores. Cost Efficiency across ownership shows that Public Sector Banks have higher Cost Efficiency in 2000-01. Private Sector Banks are cost efficient in 2004-05 while Foreign Sector Banks show higher Cost Efficiency scores in 2008-09, 2012-13 and 2016-17. Revenue Efficiency scores shows that Public Sector Banks have higher scores as compared to Private and Foreign Sector Banks in the 2000-01 and 2004-05. Foreign Sector Banks are revenue efficient in 2008-09 and 2016-17 with Private Sector Banks taking the lead in 2012-13. The results of ANOVA reveal that there exists a statistically significant difference in Cost Efficiency and Revenue Efficiency among banks in different sectors over different points of time.

Asset Quality Based Ranking of Indian Commercial Banks – A Non-Parametric Approach

2007 ◽  
Vol 3 (2) ◽  
pp. 27-37
Author(s):  
Ram Pratap Sinha
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Commercial Banks ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Public Sector Banks ◽  
Asset Quality

The present paper tries to make an asset quality based ranking of select (28) Indian commercial banks (20 public sector and eight private sector commercial banks) for the five year period 2000–01 to 2005–06 using Data Envelopment Analysis – a non parametric tool. The paper also compares the observed banks in terms of total factor productivity growth for the aforementioned period. The results obtained from the exercise indicate improvement in mean technical efficiency scores in 2004–05 relative to the previous four years. However, mean technical efficiency showed a declined in the next year. The observed private sector banks exhibited higher mean technical efficiency relative to the observed public sector banks for 2000–01 to 2003–04 (and 2005–06) while the reverse is true for 2004–05. The public sector banks, however, exhibit higher mean scale efficiency relative to the observed private sector banks. In so far as total factor productivity growth is concerned, the observed public sector commercial banks exhibited relatively higher Malmquist TFP growth than the observed private sector banks. However, the commercial banks, across ownership groups, exhibited negative mean total factor productivity growth. The negative growth (in real terms) may be the result of emphasis laid on off balance sheet activities on the part of the commercial banks

scholarly journals A study on non performing assets management with reference to public sector banks, private sector banks and foreign banks in india

2015 ◽  
Vol 1 (1) ◽  
pp. 30-43 ◽  
Author(s):  
Mayur Rao ◽  
Ankita Patel
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Least Square Method ◽  
Least Square ◽  
Foreign Banks ◽  
Public And Private ◽  
Anova Test ◽  
Public Sector Banks ◽  
Significant Difference ◽  
Public Banks

Non Performing Assets (NPA‟s) are one of the major areas of concern for the Indian banking industry. Non-Performing Assets are like a double edged sword. They do not generate any income, whereas, the bank is required to make provisions such as assets. (Olekar and Talawar, 2012).NPAs do not just reflect badly in a bank‟s account books, they adversely impact the national economy. There are many research conducted on the topic of Non- Performing Assets (NPA)Management, concerning particular bank, comparative study of public and private banks etc. This paper considers the aggregate data of public sector, private sector and foreign banks and attempts to compare analyze and interpret the NPA management from the year 2009 -2013. On the conceptual side, it gives an overview of NPA, Types of NPA, causes and on the calculation side, it covers various NPA related ratios, use of Least square method for estimating Gross NPAs in the year 2014, and also application of ANOVA test to judge the presence of any significant difference between ratio of Gross NPA to Gross Advances. The findings reveals the percentage of Gross NPA to Gross advances is increasing for public banks, ratio of Loss Advances to Gross Advances are higher in foreign banks, the Estimated Gross NPA for 2014 is also more in public banks as compared to private and foreign banks and from the ANOVA test, it is concluded Ratio of Gross NPA to Gross Advances for public sector, private Sector and foreign Banks does not have significant difference between 2009 to 2013.

scholarly journals AN ANALYSIS OF NON PERFORMING ASSETS OF INDIAN SCHEDULED COMMERCIAL BANKS

2021 ◽  
Vol 9 (11) ◽  
pp. 476-485
Author(s):  
Bhabani Mishra ◽  
Keyword(s):  
Public Sector ◽  
Pearson Correlation ◽  
Positive Association ◽  
Foreign Banks ◽  
Public Sector Banks ◽  
Significant Difference ◽  
Net Profit ◽  
Group A ◽  
Bank Group ◽  
Bad Assets

Non-performing Asset breaks the recycling procedure of deposit and investment as it does not generate substantial income and blocks the cash flow. The motive of the paper is to conduct comparative analysis among Gross NPA, Net NPA, and Net Profit by adopting correlation, ANOVA, the average for selected bank groups which are analyzed in MS-EXCEL and SPSS. The aggregate data of 16 years from 2004-05 to 2019-20 is taken from the RBI website. Public Sector banks acquire more GNPA and NNPA and less Net Profit as compared to other two due to various reasons explained in this paper. Pearson correlation in SPSS shows that there is strongly negative and significant correlation between net profit and GNPA of public sector bank group which reflects that rising bad assets can reduce the banks’ profitability. But in case of foreign banks group, a strong but positive association between net profit and GNPA is observed. The Private bank group shows no significant association between these two variables. ANOVA test result shows there is a significant difference in the movement of GNPAs and NNPAs (in amounts) for different groups of banks during the study period. But in the case of Net profit, no significant difference was observed for these bank groups.

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.

scholarly journals A comparative study of functional outcome between platelet rich plasma injection versus steroid infiltration in plantar fasciitis

2020 ◽  
Vol 6 (2) ◽  
pp. 393
Author(s):  
Harpreet Singh ◽  
Malay P. Gandhi ◽  
Aliasgar J. Rampurwala ◽  
Tej S. Rudani
Keyword(s):  
Comparative Study ◽  
Plantar Fasciitis ◽  
Platelet Rich Plasma ◽  
Corticosteroid Injection ◽  
Injection Group ◽  
Plasma Injection ◽  
Significant Difference ◽  
The Difference ◽  
The Individual

<p class="abstract"><strong>Background:</strong> Plantar fasciitis (PF) is considered as degenerative tendinopathies. Repeated micro trauma is the major etiology of these diseases. Autologous platelet rich plasma (PRP) injections are becoming more popular in the treatment of enthesopathies like PF. The growth factors in PRP cause tissue healing. We compared the result of injecting intra-lesional autologous PRP injections versus steroid infiltration in chronic PF.</p><p class="abstract"><strong>Methods:</strong> A prospective, interventional and analytic comparative study was done and 81 patients (120 heels) were included in this study and were followed up for 6 months. We assessed the outcome of each patient using visual analog score (VAS) and foot and ankle disability index (FADI) on follow-up at 1, 3, and 6 months. <strong></strong></p><p class="abstract"><strong>Results:</strong> In our study, female preponderance was seen. Left side was more common as compared to right side. Unilateral PF is more common than bilateral. The difference with in the individual group at baseline and at 1,3 and 6 months was statistically highly significant in terms of VAS and FADI (p=0.0001) But the difference in the between the two groups was insignificant for VAS and FADI at 1, 3 and 6 months.</p><p class="abstract"><strong>Conclusions:</strong> In our study, as there is no significant difference in VAS and FADI score between corticosteroid injection group and PRP injection group at 1, 3 and 6 months follow up. So, it’s reasonable to conclude that both are equally effective in PF. But as PRP injection comes out to be more time consuming and more costly, corticosteroid seems to be more efficient, cost and time wise. Hence, the latter should be a better choice.      </p>

scholarly journals A Comparative Study on Gold Loan Offered by Public Sector Banks and Non-Banking Financing Companies, Madurai

2019 ◽  
Vol 7 (3) ◽  
pp. 51-57
Author(s):  
P Vanitha Malarvizhi ◽  
A Angel
Keyword(s):  
Public Sector ◽  
Comparative Study ◽  
Research Study ◽  
Statistical Techniques ◽  
Satisfaction Level ◽  
Public Sector Banks ◽  
Factors Influencing ◽  
Comparative Survey ◽  
Banking Institution ◽  
Awareness Level

In today’s modernized world everybody prefer to avail gold loan as it can be availed within the short duration from Banking institution and Non-Banking Financing institution where the preference to other credit was comparatively lesser as it consumes time. This research study is related to a comparative survey of the gold loan offered by Public sector Banks and Non-Banking Financing Companies in Madurai. This study is focused on the preference of the borrowers in availing the gold loan, the awareness level of borrowers about lending norms, factors influencing borrowers to avail the gold loan, problems faced by the borrowers while availing gold loan and satisfaction level of borrowers towards Public sector Banks and Non-Banking Financing Companies in availing gold loan. An attempt has been made to collect information from 107 respondents from the borrowers of gold loan from Public sector Banks and Non-Banking Financing Companies in Madurai city. The data collected using an appropriate questionnaire were analyzed and interpreted using statistical techniques, and also the testing of the hypothesis was done, and conclusions arrived at whether the theories were accepted or rejected.

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