The Factors Influencing the Non-Performing Assets in the Indian Banking Sector: An Economic Analysis

2018 ◽  
Vol 9 (10) ◽  
pp. 21080-21086
Author(s):  
Bhaarathi .N ◽  
M. Thilagavathi
Keyword(s):  
Public Sector ◽  
Economic Analysis ◽  
Banking Sector ◽  
Secondary Data ◽  
Test Statistics ◽  
Hausman Test ◽  
The Public ◽  
Public Sector Banks ◽  
Factors Influencing ◽  
Asset Data

Non-Performing Assets are a burning topic of concern for the public sector banks, as managing and controlling NPA is very important. The current paper with the help of secondary data, from RBI website, tried to analyse the 8 years, (2010-2018) net non-performing asset data of 26 public sector banks, by using Hausman test statistics, and with the help of Stata software. The main objective of the study is to find out the factors influencing the Non-Performing Assets in the Indian Banking Sector. This paper also focuses on the reason behind the NPA and its impact on banking operations.

Analysis of Clearing Process Infrastructure in HDFC and SBI

2014 ◽  
pp. 383-396
Author(s):  
Amita Nigam
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Banking Sector ◽  
Secondary Data ◽  
Primary Data ◽  
Clearing House ◽  
The Public ◽  
Public Sector Banks ◽  
Use Of Technology ◽  
Private Banks

Clearing is the process of realization of proceeds of cheques drawn on other banks through intermediary RBI/SBI or any other bank that acts as a Clearing House. A clearing house established in any location helps in faster and efficient collection of the cheques. A few private banks have been authorized to run the clearing houses at few locations. HDFC Bank Ltd. is one such privileged private sector bank. The chapter analyzes the process set for clearing services in the HDFC and SBI. The study employs primary data collected through observation by spending time and watching people in the organization, though it has been supplemented by the secondary data as well. The results indicate the various types of clearing process present in HDFC Bank and SBI for providing better and fast services to their customers and set higher standards for performance. The bank is committed to increased use of technology to provide quick collection services to its customers. The banking sector, whether it is private or public sector banks, has immensely benefited from the implementation of superior technology during the recent past, which has given new shape to the nature of the services provided to customers. This chapter also compares the clearing-related banking services provided by HDFC and SBI on the basis of primary data collected through the questionnaire to provide the different aspects and drawbacks of services of the public sector bank (SBI) and private sector bank (HDFC).

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 Editorial

2007 ◽  
Vol 6 (2) ◽  
pp. v-vi
Author(s):  
Leena James
Keyword(s):  
Information Technology ◽  
Public Sector ◽  
Social Movement ◽  
Banking Sector ◽  
Work Process ◽  
The Public ◽  
Customer Base ◽  
Public Sector Banks ◽  
National Bank ◽  
The Impact

The eleventh issue of Ushus brings to you a wide variety of scholarly articles encompassing socio-economic and managerial issues. The first paper "Information technology and banking sector with reference to customer satisfaction" focuses on the impact of automation of the public sector banks as per the reflections of the bank officials and the customers. The crest of the article lies in the fact that the customers are being able to keep abreast with the exchange of automation in the modern banking practices and the survey brings out their perception towards it and throws some light on the effective ways to deal with this crisis. The study concludes with the analytical results that public sector bank customers have a positive inclination towards technological upgradation but the banks need to be more flexible in their work process and focus on marketing themselves in order to entrap a larger customer base. The paper titled "Administration of micro-credit by national bank" talks about the successful micro-finance initiatives taken by NABARD how aptly they had been implemented and evolved as a sustainable social movement over a decade now.

scholarly journals Non Performing Assets: A Study of Pithoragarh District Co-Operative Bank Ltd. (Uttarakhand)

2018 ◽  
Vol 8 (03) ◽  
Author(s):  
Vimal Kumar Joshi ◽  
C. S. Joshi
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Major Portion ◽  
The Public ◽  
Public Sector Banks ◽  
Nationalised Banks

Now a days the Indian banking sector has been facing serious problems of raising Non – Performing Assets. Non – Performing Assets are a burning topic of concern for the public sector banks, as managing and controlling NPA is very important. A well – built banking sector is significant for a prosperous economy. The crash of banking sector may have an unfavourable blow on other sectors. A banker should be very cautious in lending, because banker is not lending money out of his own pocket. A major portion of the money lent comes from the public deposits and government share. At present NPA is increasing year by year in nationalized banks. According to the RBI data the Gross NPA of nationalised banks as on end of September 2017 hits 7.34 lakh crore. In this direction present paper is undertaken to study the reasons for advances becoming NPA of the Pithoragarh District CO- Operative Bank ltd and to give suitable suggestions to overcome the mentioned problem.

scholarly journals Information Technology and Banking Sector With Reference to Customer Satisfaction

2007 ◽  
Vol 6 (2) ◽  
pp. 1-17
Author(s):  
K J Raman ◽  
A Marcus
Keyword(s):  
Information Technology ◽  
Public Sector ◽  
Banking Sector ◽  
Main Concern ◽  
The Public ◽  
Public Sector Banks ◽  
Wide Range ◽  
New Development ◽  
Chennai City ◽  
The Impact

Raman and Marcus (2007) have studied the impact of Automation in Public sector Banks as per the reflections of bank customers and bank officials belong to Chennai region. Marcus (2006) studied the public sector banks with special reference to selected branches in Chennai city and the perception of customers due to inception of Information Technology in the banking sector. Customers vary in their perception on information technology. In reality, customers are not against for automation and IT inception. The main concern for them is the delay in transaction due to technical snag and the increased cost of operation due to automation. Most of the customers have accounts in the private sector banks and they are well informed about the new development and up gradation that is happening in those banks. The customers believe that crores of money is being spent by the banks in the name of developing software, training the staff in IT and in providing better ambience to keep abreast with the private banks, but the ultimate outcome of which is not noteworthy.The present study is based on the reflections of 674 bank customers of the public sector banks who have various types of bank accounts in the branches of Chennai city. Branches of public sector banks in Chennai city, consisting of 19 nationalized banks and State Bank of India with its 7 Associates were covered in the process. A wide range of customers through various domains of banking operations have been studied to identify their overall perception.

Banking in India: Evolution, Performance, Growth and Future

2020 ◽  
Vol 66 (3) ◽  
pp. 312-326
Author(s):  
Nand L Dhameja ◽  
Shilpa Arora
Keyword(s):  
Economic Development ◽  
Public Sector ◽  
Banking Sector ◽  
Financial System ◽  
Significant Part ◽  
The Public ◽  
Public Sector Banks ◽  
Bright Future ◽  
Private Banks ◽  
Performance Challenges

Banks, a significant part of financial system of a country, are essential for its economic development. They have developed over the years and are faced with the challenges for the bright future. The article discusses development and future of banking sector in India in the light of the reforms over the years and is divided into four parts. The paper traces evolution and significance of banking, discusses reforms during pre-liberalisation and post-liberalisation as recommended by various Committees, namely, Narasimham Committees (1991 & 1998), Verma Committee (1996) and Khan Committee (1997) along with the structural and operational reforms. The performance challenges in terms of fee-based income, profitability, credit deposit ratio, business and profitability per employee are highlighted, comparing the public sector banks and private banks.

Measuring Service Quality of Commercial Banks in an Underdeveloped Economy

2014 ◽  
pp. 256-267
Author(s):  
M. P. Bezbaruah ◽  
Basanta Kalita
Keyword(s):  
Public Sector ◽  
Service Quality ◽  
Commercial Banks ◽  
Banking Sector ◽  
Quality Standard ◽  
Reform Era ◽  
The Public ◽  
Public Sector Banks ◽  
Private Banks

In the post-reform era, quality delivery of the services has acquired centre point of the service industry around the globe. The banking sector being purely a service-related industry has been influenced more by the issue of providing quality service. With the entry of private banks, the banking sector has gone through many transformations including the way services are extended. In a backward state like Assam, this has arrived a little late, but the changes are gradually visible. The chapter captures the service quality standard of the Scheduled Commercial Banks (SCBs) and also for the different bank groups in order to make a comparison. The SERVPERF scale is used to study the replies of the customers in two cities, Guwahati and Tezpur, and some econometric tools are used to analyse the data. The study reveals that the private sector banks are far ahead of the public sector banks in terms of quality of service. The private banks influence the service quality of the SCBs the most among all the bank groups. Overall, the public sector banks, which are the dominant market players, will have to work hard to catch the level of the private banks.

scholarly journals DETERMINANTS OF PRIORITY SECTOR LENDING OF INDIAN PUBLIC SECTOR BANKS: AN ECONOMETRIC ANALYSIS

2017 ◽  
Vol 5 (7) ◽  
pp. 461-473
Author(s):  
Santosh Kumar Panda ◽  
Ganesh Prasad Panda ◽  
Anil Kumar Swain
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Financial Institutions ◽  
Small Businesses ◽  
Commercial Banks ◽  
Secondary Data ◽  
The Public ◽  
Public Sector Banks ◽  
Number Of Factors ◽  
Policy Suggestions

Compulsory sanctioning credit or priority sector lending (PSL) is part of the regulatory framework for commercial banks/ financial institutions in many countries, both developing and developed. However, compliance and lending effectiveness of such programs may be determined by a number of factors. This may be particularly so in developing countries, where availability of finance for the vulnerable sectors likes agriculture, small businesses, weaker sections, are scarce. The present paper aims at examining the patterns of priority sector lending by banks, with a view to identifying the factors which determine this lending The paper is based on an analysis of secondary data relating to priority sector lending (2006-07-2015-16) for the Public sector banks in India. The results indicate gaps in patterns of the sect oral target compliance by different bank groups, along with the lending preferences and challenges faced by banks in such lending. It also identifies bank-specific characteristics like the nature of ownership, size, performance, etc., which have a significant impact on the priority sector lending patterns. Based on its findings, the paper offers policy suggestions for improving the effectiveness of priority sector lending program.

Measuring the performance efficiency of banks in a developing economy

2018 ◽  
Vol 25 (2) ◽  
pp. 575-606 ◽  
Author(s):  
Sashank Chaluvadi ◽  
Rakesh Raut ◽  
Bhaskar B. Gardas
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Banking Sector ◽  
Data Envelopment ◽  
Content Type ◽  
The Public ◽  
Public Sector Banks ◽  
Quality Category ◽  
Indian Banks

Purpose The purpose of this paper is to measure and evaluate the performance efficiency of 44 Indian commercial banks, out of which 26 banks belong to the public sector, and 18 banks are from the private sector for the period of 2008-2013. Design/methodology/approach The two-stage network data envelopment analysis (DEA) approach (i.e. variable return to scale and constant return to scale) is used for the measurement of performance in the Indian banking sector. To verify the robustness of the proposed study, sensitivity analysis is also performed. Findings A comparative study between public sector banks (PSBs) and private sector banks (PVBs) showed that latter being more productive compared to the former. The investigation highlighted that two banks are most efficient among the PSBs, and eight banks from PVBs are found to be most effective. On the other side, the performance of State Bank of Bikaner & Jaipur and Lakshmi Vilas Bank is discovered to be less significant from PSB and PVB category, respectively. Research limitations/implications This study will guide the Indian banks to improve upon the factors in which they are lagging, for the improvement of their overall performance. The quality category parameters, i.e. quality of service, quality of equipment, are not considered due to unavailability of information in the output measures, and the methodology used for the study does not identify the causes or remedies for the inefficiency of the banks. Originality/value The developed DEA model would help the decision maker to take decisions on the issues related to the performance of the banks. This paper discusses very practical issues in an analytic manner.

Measuring Service Quality of Commercial Banks in an Underdeveloped Economy

2016 ◽  
pp. 1316-1327
Author(s):  
M. P. Bezbaruah ◽  
Basanta Kalita
Keyword(s):  
Public Sector ◽  
Service Quality ◽  
Commercial Banks ◽  
Banking Sector ◽  
Quality Standard ◽  
Reform Era ◽  
The Public ◽  
Public Sector Banks ◽  
Private Banks

In the post-reform era, quality delivery of the services has acquired centre point of the service industry around the globe. The banking sector being purely a service-related industry has been influenced more by the issue of providing quality service. With the entry of private banks, the banking sector has gone through many transformations including the way services are extended. In a backward state like Assam, this has arrived a little late, but the changes are gradually visible. The chapter captures the service quality standard of the Scheduled Commercial Banks (SCBs) and also for the different bank groups in order to make a comparison. The SERVPERF scale is used to study the replies of the customers in two cities, Guwahati and Tezpur, and some econometric tools are used to analyse the data. The study reveals that the private sector banks are far ahead of the public sector banks in terms of quality of service. The private banks influence the service quality of the SCBs the most among all the bank groups. Overall, the public sector banks, which are the dominant market players, will have to work hard to catch the level of the private banks.

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