scholarly journals INDIAN BANKING INDUSTRY: A NEW EVIDENCE FROM A PROFITABILITY PERSPECTIVE

2021 ◽  
Vol 22 (2) ◽  
pp. 349-360
Author(s):  
Shailendra Rai ◽  
Miia Chabot ◽  
Jean-Louis Bertrand ◽  
Imlak Shaikh
Keyword(s):  
Cross Sections ◽  
The Public ◽  
National Priority ◽  
Private Banks ◽  
Indian Banks ◽  
Public Banks ◽  
Social Importance ◽  
New Evidence ◽  
Populous Country ◽  
Economic Outlook

While India is set to become the world’s most populous country by 2050, it is also the home to the world’s largest number of unbanked individuals. This paper aims to investigate the profitability issue with a focus on public banks. Using a new methodology based on comparisons tests and panel analysis that test unobserved heterogeneities between banks. We show that public banks are not low performers, nor can private banks be considered high performers Finally, we show that the proportion of non-performing assets (NPAs) is a real concern and requires urgent attention of government and regulators for Indian banks to serve profitability their home market. Banks that make more profits on non-interest income are not necessarily less profitable than others. Further, outcomes favour the ideas that if public banks are able to clean-up their non-performing assets as well as follow a sound prudential regulation, their profits could strongly grow. Future reforms must consider the public bank’s key role in the growth of the India’s economic outlook, especially when it comes to projects of social importance and national priority. The study is based on 105 banks with cross-sections from 2003–2016; however, India’s government has initiated reforms in the banking segment, which has led to a significant decrease in government stake and the number of banks.

Financial misconduct in Indian banks: what matters and what doesn’t?

2020 ◽  
Vol 21 (2) ◽  
pp. 57-76
Author(s):  
Saibal Ghosh
Keyword(s):  
Fixed Effects ◽  
Extended Period ◽  
Content Type ◽  
Factors Affecting ◽  
Private Banks ◽  
Bank Behavior ◽  
Financial Misconduct ◽  
Indian Banks ◽  
Public Banks ◽  
Fixed Effects Regression

Purpose While several facets of financial misconduct have been explored, one aspect which has largely bypassed the attention of researchers is the factors affecting such misconduct behavior in banks. To investigate this in detail, this paper aims to use disaggregated data on Indian banks for an extended period to understand the factors driving such behavior. Design/methodology/approach Given the longitudinal nature of the data, the author uses fixed effects regression methodology which enables us to control for unobserved characteristics that might affect the dependent variable. Findings The analysis indicates that both bank- and board-specific factors are important in driving financial misconduct, although their importance differs across ownership. In particular, while size and capital are relevant for public banks, liquidity is more of a concern for private banks as compared with their public counterparts. In addition, the relevance of bank boards is important only in case of private banks. These results hold after controlling for the structure of the banking industry and the macroeconomic environment. Originality/value To the best of the author’s knowledge, this is one of the earliest studies for India to carefully examine the interface between financial misconduct and bank behavior in a systematic manner.

scholarly journals Efficiency Measurement of Indian Banking Industry: An Empirical Comparative Analysis

2021 ◽  
Vol 12 (4) ◽  
pp. 135
Author(s):  
Syed Raziuddin Ahmad ◽  
Muhammad Nauman Khan
Keyword(s):  
Technical Efficiency ◽  
Banking Sector ◽  
Banking Industry ◽  
Scale Efficiency ◽  
Public And Private ◽  
The Public ◽  
Private Banks ◽  
Public Banks ◽  
The Individual ◽  
Private Banking

The following study is conducted to measure and compare the performance of 32 Indian banks, 21 public banks, and 11 private banks, at two tiers during the period of 2008–2018. Industrial analysis of both the public and private banking sectors is conducted in the first tier, followed by an individual bank-level analysis at the second tier. Data analysis consists of deposits, assets, and equity as inputs to measure the outputs practicing data envelopment analysis techniques. The empirical results portray a mixed trend in various elements of efficiency. They reveal that with the common pledge to expand market share and performance, public and private banks have been improving and covering the highest efficiency level. However, at the industry level, the private banking industry has slightly better technical and pure technical efficiency results compared to the public banking industry. On the other hand, the public banking sector performed well compared to the private banking industry in the stipulated study period based on mean scale efficiency results.Generally, many studies on Indian Banking Industry focus on determinants of industrial banking growth indicators. Further, we examine Indian banking performance at the individual bank level by incorporating the latest available data. In terms of technical and pure technical efficiency, Kotak Mahindra Bank Ltd., a private bank, scored the highest at the individual bank level. The State Bank of Bikaner & Jai has the highest score in terms of scale efficiency and thus is the best example of a public sector bank. Despite the improvement in income and deposits in both types of banking, there is still room for public banks to redirect their short-term and long-term marketing and communication strategies to focus on targeting customers and enhancing management skills at the branch level.

Interrelationship Among Competition, Diversification and Liquidity Creation: Evidence from Indian Banks

2021 ◽  
Vol 15 (2) ◽  
pp. 183-204
Author(s):  
Pankaj Sinha ◽  
Naina Grover
Keyword(s):  
Inverse Relationship ◽  
Consumer Welfare ◽  
Adverse Impact ◽  
Public And Private ◽  
Jel Codes ◽  
Trade Off ◽  
Private Banks ◽  
Indian Banks ◽  
The Impact

This study analyses the impact of competition on liquidity creation by banks and investigates the dynamics between diversification, liquidity creation and competition for banks operating in India during the period from 2005 to 2018. Using the broad and narrow measures of liquidity creation, an inverse relationship is determined between liquidity creation and competition. The study also indicates a trade-off between pro-competitive policies to improve consumer welfare and the liquidity-destroying effects of competition, and it highlights how diversification affects liquidity creation. Highly diversified banks in India create less liquidity compared with less-diversified banks, both public and private. The liquidity-destroying effects of competition is intensified among highly diversified private banks, which suggest that diversification has not moderated the adverse impact of competition. JEL Codes: G01, G18, G21, G28

scholarly journals Service Performance in Public, Conventional Private and Specialized Private Banks in Bangladesh

2018 ◽  
Vol 14 (3) ◽  
pp. 100
Author(s):  
Md Abu Saleh
Keyword(s):  
Research Field ◽  
Service Performance ◽  
Future Research ◽  
Limited Attention ◽  
Competitive Edge ◽  
Area Of Interest ◽  
Private Banks ◽  
And Performance ◽  
Public Banks ◽  
Private Banking

Banking services play a key role in present competitive edge. Accordingly, service quality, satisfaction and performance have become an area of interest in such research field. An extensive review of literature revealed that very limited attention has been given to explore the borrower customers’ perspectives regarding the conventional public, private and specialised private banking. Therefore, this research strives to accommodate a developing perspective where conventional and non-conventional Islamic banks are operating and providing services to their customers. Data have been collected from 78 borrower customers to examine their perceived quality, satisfaction and performances of banks. The study revealed that service performance by the Islamic and conventional private banks were found well-organized in providing services and better than public banks. The study finally addressed the limitations and future research directions.

scholarly journals Deafening silence on a vital issue: The World Health Organization has ignored the sexuality of persons with disabilities

2018 ◽  
Vol 7 ◽  
Author(s):  
Christine Peta
Keyword(s):  
World Health Organization ◽  
Well Being ◽  
World Health ◽  
Human Beings ◽  
Persons With Disabilities ◽  
The Public ◽  
National Priority ◽  
Social Welfare System ◽  
The World ◽  
Health Organization

In 2016, the World Health Organization, through the Global Cooperation on Assistive Technology Initiative, issued the Priority Assistive Products List which is meant to be a guide to member states of the 50 assistive products needed for a basic health care and/or social welfare system; it is also a model from which nations can develop their national priority assistive products lists. The aim of this opinion paper is to share my views about the Priority Assistive Products List on the grounds that it makes no distinct mention of sexual assistive devices, yet research has indicated that sexuality is an area of great concern for persons with disabilities. In any case, sexuality forms a core part of being human, and it impacts on both the physical and mental well-being of all human beings. I conclude in part that, in its present format, the list perpetuates the myth that persons with disabilities are asexual beings who are innocent of sexual thoughts, feelings and experiences. The list also propagates the stereotype that sexuality is a sacred, private, bedroom matter that should be kept out of the public domain, to the detriment of the health and well-being of persons with disabilities.

scholarly journals Bank Selection Criteria and Performance of Public and Private Banks of Sri Lanka: A Comparative Study

2020 ◽  
Vol 2 (2) ◽  
pp. 197-215
Author(s):  
M. S. Nilam
Keyword(s):  
Sri Lanka ◽  
Foreign Banks ◽  
Competitive Environment ◽  
Sri Lankan ◽  
Technological Advancement ◽  
Public And Private ◽  
Financial Deregulation ◽  
Private Banks ◽  
And Performance ◽  
Public Banks

Financial deregulation and technological advancement have led the sri lankan banking industry to highly competitive environment. In sri lanka, the competition is not only among the local banks, but also from foreign banks. To stay competitive and strong, a bank’s customer retention is crucial. In this context banking institutions would like to know how the customers select their bank and how they perceive the performance of banks in such competitive environment. The researcher selected sample of 468 banking customers from public and private banks of sri lanka. Responses were analyzed and presented through descriptive, correlation and regression analysis. The findings showed that the security and service quality were the two most crucial factors when selecting a bank in sri lanka. Significant gender and education level factors in bank selection were observed. Study concludes that sri lankan private banks perform better on those factors than the public banks in sri lanka.

scholarly journals Leadership perception in candidate faces: Scotland's unionists prefer dominant leaders, and so do nationalists – but only if they are economic pessimists

2019 ◽  
Vol 28 (4) ◽  
pp. 434-458
Author(s):  
Kristen K. Knowles ◽  
Anthony C. Little
Keyword(s):  
Public Perception ◽  
Effect Sizes ◽  
Decision Making Process ◽  
Psychology Research ◽  
The Public ◽  
Leadership Perception ◽  
Behavioural Characteristics ◽  
Voting Decisions ◽  
Scottish Independence ◽  
Economic Outlook

Voters rely on many cues to make decisions about who to vote for, and the appearance of a potential leader can play an important part in this decision-making process. When choosing leaders, it is thought that voters make ‘fit-to-task’ voting decisions, for example, exhibiting a preference for masculine-looking leaders in hypothetical wartime scenarios, when masculine behavioural characteristics would be most valued. Here, we examine face preferences within a sample of Scottish voters during the campaign for the 2014 Scottish independence referendum. Subjects were presented with masculinised and feminised versions of faces in a forced-choice experimental task to select their preferred face in a hypothetical national election. No voters (those who voted to maintain the Union) chose more masculine-faced hypothetical leaders than Yes voters (those who voted in favour of an independent Scotland); effect sizes observed were medium. Within Yes voters, economic concern was related to a preference for masculine faces, but for No voters, economic outlook did not relate to face preferences. These findings underscore the importance of real-world socio-political contexts in psychology research, particularly that concerning the public perception of different leadership prototypes. Implications in the current Scottish context are discussed.

Estimating the Basel III Capital Requirement for Indian Banks

2018 ◽  
Vol 64 (3) ◽  
pp. 253-277
Author(s):  
Vighneswara Swamy
Keyword(s):  
Commercial Banks ◽  
Study Groups ◽  
Basel Iii ◽  
Capital Requirement ◽  
Tier 2 ◽  
Public Sector Banks ◽  
Total Capital ◽  
Private Banks ◽  
Tier 1 ◽  
Indian Banks

Abstract The study estimates the Basel-III capital requirement for Indian banks employing the methodology incorporating the reported tier-1, tier-2 capital, total capital and risk-weighted assets (RWAs) sourced from the Basel disclosures made by the banks on their websites. In order to understand the strategy and the response of different bank groups based on their ownership styles, this study, groups the banks into scheduled commercial banks, public sector banks group, and private banks and considers the data for the period 2002 – 2011. The results suggest that with an assumed growth of RWAs at 10%, banks in India would require additional minimum tier-1 capital of INR 2.51 trillion. With an assumed RWAs growth at 12% and 15%, the requirement would be in the order of INR 3.36 trillion and INR 4.74 trillion respectively. JEL classifications: E44, E61, G2, G21, G28 Keywords: Basel III, capital and liquidity, commercial banks, capital, countercyclical capital buffers, financial (in)stability

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