Financial Performance Analysis of the Selected Cooperative Banks in Kerala

2020 ◽  
pp. 473-477
Keyword(s):  
Banking System ◽  
Sustainable Growth ◽  
Ratio Analysis ◽  
Agricultural Credit ◽  
Indian Economy ◽  
Management Efficiency ◽  
Cooperative Banks ◽  
Asset Quality ◽  
The Comparative Study ◽  
Ranking Technique

Co-operative Banks have assisted in enhancing the growth rate of Indian economy by providing a boost to agricultural production by making available cheap and easy agricultural credit in the country. A healthy cooperative banking system is vital for the Indian economy to achieve sustainable growth in a competitive environment. A comparative analysis of profitability, liquidity (debt coverage), management efficiency and asset quality were done using ratio analysis and through CAGR. Finally, the banks were ranked according to their performance using Garrett ranking technique. The comparative study was conducted among the selected cooperative banks for the period of 2012-13 to 2016-17, and the banks were ranked by considering various parameters of profitability, debt coverage, management efficiency and asset quality. Each bank was strong in different parameters. For better performance of the banks, it is recommended that they should increase the membership as it directly influences the deposits as well as loans. It is suggested to increase the investments by the co-operatives by diverting excess liquid cash maintained in the banks were possessing high cash to deposit ratio compared to commercial banks.

scholarly journals Financial Sustainability Assessment of the Largest Systemically Important Credit Institutions in the Context of the Global Instability

2021 ◽  
Vol 12 (2) ◽  
pp. 10
Author(s):  
Oksana V. Savchina ◽  
Ekaterina A. Sidorina ◽  
Olga V. Savchina ◽  
Petr S. Shcherbachenko
Keyword(s):  
National Economy ◽  
Financial Stability ◽  
Banking Sector ◽  
Sustainability Assessment ◽  
Banking System ◽  
Capital Adequacy ◽  
Business Strategies ◽  
Financial Sustainability ◽  
Management Efficiency ◽  
Asset Quality

The national banking system is the driver for the national economy that unites various types of credit organizations that operate within a single monetary mechanism. The banking system is a part of the economic “organism”, whose condition determines the stable development of society. The problems that currently exist in the banking sector reflect instability of the entire economic situation in the country. The reasons are a reduction in budget support for organizations and the inability of some of them to adapt to changing external conditions. In crisis conditions, it is of particular interest to assess the financial sustainability of the activity of the largest systemically important banks in the country, which are the “circulatory system” of the national economy. This article assesses the financial stability of PJSC “Sberbank of Russia” based on an analysis of the main groups of its performance indicators for 2007-2019: capital adequacy, asset quality, management efficiency, profitability and liquidity. According to the research results, it is revealed that during the period under review, the activity of Sberbank is stable with respect to such indicators as capital adequacy, profitability, management efficiency and liquidity. Bank activity is unstable relative to asset quality indicators. The high value of the asset quality ratio characterizes the increased degree of riskiness of operations conducted. The ratio of overdue debt is above the norm, which adversely affects the financial stability of the bank. The most important achievement of Sberbank of Russia in 2019 - the launch of a new digital platform of the bank. The use of artificial intelligence technologies has already become an important driver of Sberbank business. Due to the pandemic of COVID-19, the Russian banking sector may face a number of problems. By 2021-2022, the growth is expected only by those banks that will build an effective risk management system and will be able to adapt their business strategies to the new economic realities and tougher requirements of the regulator.

BANK SPÓŁDZIELCZY (COOPERATIVE BANK) AS A GUARANTOR OF THE STABILISATION OF THE LOCAL FINANCIAL SYSTEM1

2019 ◽  
pp. 173-179
Author(s):  
Andrzej Pawlik
Keyword(s):  
Data Analysis ◽  
Banking Sector ◽  
Statistical Data ◽  
Local Development ◽  
Banking System ◽  
Analysis Method ◽  
Statistical Data Analysis ◽  
Data Analysis Method ◽  
Strong Position ◽  
Cooperative Banks

Urgency of the research. One of the most essential sources of supporting regional and local development is the banking system. Target setting. The study presented describes cooperative banking, represented by Bank Polskiej Spółdzielczości S.A. and Bank Spółdzielczy w Kielcach. The use of the statistical data analysis method allowed to demonstrate the strong position of cooperative banking in the market, fostering regional and local development. Actual scientific researches and issues analysis. The foundations for the modern cooperative banking sector were laid by cooperative financial organisations functioning more than 150 years ago [Pawlik, 2017, s. 152]. Its history is connected with difficulties faced in the period of partitions, work at the foundations after the end of World War I and Poland’s regaining its national independence. Uninvestigated parts of general matters defining. At present, cooperative banking functions as a result of the adoption by the Sejm of the Republic of Poland on 7 December 2000 of the act on the functioning of cooperative banks, their associations and associating banks, which ensured new legal conditions for the functioning of the sector2. The research objective. The article formulates the hypothesis that nowadays activities of cooperative banks will contribute to regional and local development. The statement of basic materials. One of the most essential sources of supporting regional and local development is the banking system. This system can guarantee the stabilisation of the local financial system. By supporting the development of regional and local entrepreneurship through loans, investment activities of the banks and financial and investment consulting, it will determine the identity of the region concerned. Conclusions. The use of the statistical data analysis method allowed to demonstrate the strong position of cooperative banking in the market, fostering regional and local development.

NPLs — The Solution Recipe for Albania

2015 ◽  
Vol 3 (1) ◽  
pp. 48
Author(s):  
Elona Shehu ◽  
Elona Meka
Keyword(s):  
Interest Rate ◽  
Negative Relationship ◽  
Banking System ◽  
Gdp Growth ◽  
System A ◽  
Analysis Technique ◽  
Recent Financial Crisis ◽  
The Stability ◽  
Asset Quality ◽  
Macroeconomic Determinants

The quality of the loan portfolio in Albanian banking system is facing many obstacles during the last decade. In this paper we look at possible determinants of assets quality. During the recent financial crisis commercial banks were confronted with deteriorating asset quality that threatened not only the banking industry, but also the stability of the entire financial system. This study aims to examine the correlation between non-performing loans and the macroeconomic determinants in Albania during the last decade. NPLs are considered to be of a high importance as they represent the high risk exposure of banking system. A solid bank with healthy assets increases the market efficiency. Our approach is based on a panel data regression analysis technique from 2005-2015. Within this methodology this study finds robust evidence on the existing relationship between lending interest rate, real GDP growth and NPLs. We expect to find a negative relationship between lending interest rate and asset quality. Further we assume an inverse relationship between GDP growth and non-performing loans, suggesting that NPLs decrease if the economy is growing. Furthermore this study proposes a solution platform, which looks deeper into the possibility of creating a secondary active market for troubled loans, restructuring the banking system or implementing the Podgorica model. This research paper opens a new lieu of discussion in terms of academic debates and decision-making policies.

Growth and Performance of Agriculture Sector in India

2015 ◽  
Vol 3 (2) ◽  
Author(s):  
Naresh Singla ◽  
Mamandeep Kaur
Keyword(s):  
Growth Rate ◽  
Capital Formation ◽  
The Other ◽  
Agricultural Credit ◽  
Agricultural Growth ◽  
Indian Economy ◽  
Agriculture Sector ◽  
Food Grain ◽  
And Performance ◽  
Agricultural Labourers

The growth of agriculture and allied sectors is critical for the Indian economy as about 49 percent of the population is directly or indirectly dependent on agriculture. During the last decade and so, the agriculture sector has undergone profound changes resulting in sharp deceleration in its growth. The study has attempted to analyze growth and performance of the agriculture sector in India since 1980-81 and tries to comprehend some of the factors responsible for the deceleration in growth. The study has shown that agriculture sector has been able to show tremendous improvement in expansion of area and production of food grain and non-food grain crops. However, there are so many underlying factors responsible for slowdown of the agricultural growth. Some of the factors identified include: Increase in area under non-agriculture uses, excessive dependence on rain fed farming, increase in number of agricultural labourers, reducing size of the operation holdings, over use of agri-inputs, inequity in the distribution of agriculture credit along with sharp deceleration in public gross capital formation in agriculture etc. The study pointed in order to achieve higher growth rate, there is a need to enhance the gross capital formation in agriculture sector particularly on irrigation so that more area can be brought under assured irrigation. Bringing equity in distribution of agricultural credit coupled with judicious and need-based agricultural inputs are some of the other recommendations drawn based upon the study.

Comparative analysis of Financial performance of HDFC and SBI bank on the basis of Ratio analysis

2021 ◽  
pp. 111-114
Author(s):  
Reetika Verma
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Ratio Analysis ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Equity Ratio ◽  
Accounting Ratios

The banking sector in any economy plays a significant role in its growth and development. This paper is based on financial performance analysis of two leading banks of India. This paper aims to evaluate financial performance of HDFC and SBI bank on the basis of accounting ratios and also to study the functioning of the Indian banking system [6]. In this paper different ratios of both the banks are compared. Capital adequacy ratio, debt equity ratio, leverage ratios, profit and loss account ratios, net interest margin ratio, return on equity and other ratios are used to compare the performance of both the banks. This research is based on the data collected from financial statements of the banks. The performance of both the banks are compared from the year 2015 to 2020. It is observed that performance of HDFC is better than SBI not only in terms of ratio analysis but also in terms of customer satisfaction.

scholarly journals Bank Regulation and Level of Non performing Loans in Commercial Banks in Nakuru County Kenya

2020 ◽  
Vol 2 (2) ◽  
pp. 59-76
Author(s):  
Geoffrey Indeje Muhanji ◽  
Joseph Theuri
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Bank Regulation ◽  
Capital Adequacy ◽  
Liquidity Management ◽  
Macroeconomic Factors ◽  
Nonperforming Loans ◽  
Management Efficiency ◽  
Asset Quality ◽  
The Relationship

The study sought to determine the effect of bank regulation and level of nonperforming loans in commercial banks in Nakuru County Kenya. The specific objectives of the study were to explore the effect of capital adequacy on the level of nonperforming loans in commercial banks in Nakuru County Kenya, to find out the effect of asset quality on the level of nonperforming loans in commercial banks in Nakuru County Kenya, to evaluate the effect of liquidity management on the level of nonperforming loans in commercial banks in Nakuru County Kenya, to examine the effect of management efficiency on the level of nonperforming loans in commercial banks in Nakuru County Kenya and to determine the moderating effect of macroeconomic factors on the relationship between bank regulation and level of nonperforming loans. The literature review focused on portfolio theory of investment, capital asset pricing theory and the capital buffer theory of capital adequacy. The primary data was collected using structured questionnaires and secondary data was collected from the banking survey 2017 and central bank of Kenya annual supervisory reports. The study employed multiple linear regression analysis and the finding revealed that there exist a negative and statistically insignificant relationship between capital adequacy and non-performing loans. It was also observed that there exist a negative and statistically insignificant relationship between liquidity management and non-performing loans. On the other hand, there exist a positive and statistically significant relationship between asset quality and non-performing loans. Similarly, there exist a positive and statistically insignificant relationship between management efficiency and non-performing loans. Finally, the findings indicated that macroeconomic factors have moderating effect on the relationship between bank regulations and non-performing loans in commercial banks in Nakuru County. It was concluded that asset quality positively influences non-performing loans while management efficiency influence positively the non-performing loans. Similarly, liquidity management exerts a negative influence on non-performing loans. Finally, capital adequacy influence negatively on non-performing loans. The study recommends that Central Bank of Kenya should regularly access lending behavior to ensure compliance with banking regulations to avoid increasing incidences of non-performing loans. In addition, Central Bank of Kenya should closely monitor banks with deteriorating asset quality. Further, Central Bank of Kenya should strictly monitor the economic sector and ensure that banks provide adequate provisions for loans to mitigate risks of default. Furthermore, banks should maintain a good balance on deposits and lending out loans and adhere to regulators decisions about monetary policies. Finally, banks should increase the operational efficiency of operation weakness and improve corporate governance on the sanction of loans and Central Bank of Kenya should focus on managerial performance in order to detect banks with potential increases in non-performing loans.

THE HEALTHY INTEGRATION: MODERN ECONOMICS AND CHANAKYA’S ARTHASASHTRA

2021 ◽  
Vol XIII (1) ◽  
pp. 91-119
Author(s):  
Dr. Sudip Chakraborty ◽  
◽  
Mrs. Durba Dutta
Keyword(s):  
Evolutionary Process ◽  
Sustainable Growth ◽  
Constitutional Amendment ◽  
State Function ◽  
Ancient India ◽  
Indian Economy ◽  
Gradual Process ◽  
Economic Strategies ◽  
Bankruptcy Code ◽  
Global Growth

Economic Evolution is a gradual process. It takes ages to develop and convert any country into meaningful and sustainable growth engines. The Indian Economy is no exception to this evolutionary process. In spite of the successful completion of the Five-Year Plans from 1951 to the Twelfth Five-year plan ( 2012-2017) , Indian Economy has still been reeling with challenges like Population Growth, Crumbling Infrastructure, Terrorism, Corruption, Inadequate Taxation and Unemployment. However, there is a shift in the economy post Liberalization. Since 1991, the economy has been transformed from a closely held inward looking economy to a driving force of global growth. Recently there has been a concentrated effort to reform the cobweb of taxes across the Indian Economy which is reflected in the Constitutional Amendment Bill for GST and its implementation, Demonetization of High Denomination Bank Notes, enactment of Insolvency and Bankruptcy Code, enactment of Aadhaar Bill for disbursement of financial subsidies and benefits. There has been an overall complex- security development matrix in India. The sudden economic upheavals intrigue one to think if there exists any root or connection of the various economic strategies and their origin in India, or they are simply borrowed from the western economic theories. Arthashastra, by Chanakya, being a very famous Indian treatise on politics, economics, military strategy, state function and social organization of ancient India, an attempt is made to relate the contemporary economic scenario with those mentioned in the Arthashastra. The paper shall try to reflect the connectivity of various functional roots from Kautilya to kalyug.

scholarly journals Determinants of Capital Adequacy among the Commercial Banks in Ghana

2020 ◽  
pp. 88-95
Author(s):  
Ernest Somuah Annor ◽  
Fredrick Somuah Obeng ◽  
Nelly Opoku Nti
Keyword(s):  
Commercial Banks ◽  
Fixed Effects ◽  
Banking System ◽  
Secondary Data ◽  
Least Square ◽  
Capital Adequacy ◽  
Annual Reports ◽  
Independent Variables ◽  
Strict Compliance ◽  
Asset Quality

The study examined the determinants of capital adequacy among selected commercial banks in Ghana. Eight banks were sampled for the periods 2009-2016, secondary data was gathered from the annual reports of selected banks as well as the Ghana Banking Survey authored by Price Waterhouse Coopers Ghana (PWC). A balanced panel approach was employed in investigating the determinants of capital adequacy among selected commercial banks in Ghana whilst comparing estimates of pooled OLS, random and fixed effects models and the generalized least square models to ascertain the robustness of the model. The finding suggests that all the independent variables statistically and significantly influence capital adequacy. While non-performing loans negatively relate to CAR, LFTD and ROA positively impact CAR or asset quality. It is recommended that the central bank and various banks operating in Ghana pay attention to strict compliance with the regulatory regimes to keep banks sound and fit to withstand distress and losses which may, in turn, affect the banking system and economy in entirety.

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