scholarly journals Characterization of Adopters and Non Adopters of Credit Cards in Indian Banking Industry

2017 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Kamalpreet Kaur ◽  
Mandeep Kaur
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Credit Cards ◽  
Recent Issue ◽  
Public Sector Banks ◽  
Time Period ◽  
Financing Pattern ◽  
Asset Quality ◽  
Delivery Channel

In Indian banking industry, plastic cards can be considered as one of the product as well as process innovation in which Credit Cards have gained prominence as a delivery channel for conducting banking transactions. The present study investigates the recent issue related to the launch of one of the innovation in plastic cards in Indian Banking Sector. The main objective of the study is to identify the characteristics of the banks which could have been affected with the adoption of Credit Cards. For this purpose, all the scheduled commercial banks (79 in number which consists of 27 Public Sector Banks, 23 Private Sector Banks and 29 Foreign Sector Banks) have been taken as sample. The whole sample of banks has been categorized into adopter and non adopter groups. The time period of the study is of 14 years i.e. from 2000 to 2013. Various Bank specific variables Viz. Age, Efficiency, Size, Asset Quality, Profitability, Diversification, Capitalisation, Cost of Operations, Financing Pattern, Liquidity and Industry Advantage have been taken into consideration which may help to demarcate adopters and non adopters. It has been concluded that the initiators and adopters take advantage over the non adopter ones and thus former have found to perform better in terms of various parameters. Overall, the adopter banks are larger in size, older in age, more profitable, having lesser branches, more market share and more liquid as compare to late adopter ones.

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.

Corporate Debt Vulnerability and Non-performing Assets in India

2020 ◽  
pp. 097215092093575
Author(s):  
K. Dhananjaya
Keyword(s):  
Banking Sector ◽  
Global Financial Crisis ◽  
Corporate Debt ◽  
Sales Growth ◽  
Bank Profitability ◽  
Balance Sheets ◽  
Public Sector Banks ◽  
Bank Balance Sheets ◽  
Asset Quality

This article examines the increasing corporate debt vulnerability and its impact on the asset quality of the Indian public sector banks (PSBs) in the post-global financial crisis (post-GFC) of 2008. The study shows that the stress in both corporate and bank balance sheets has increased in the post-GFC. As a result, there has been a steep increase the proportion of firms with negative profitability. The article finds that the declining profitability has severely affected the debt serviceability of the firms. Consequently, the debt at risk has risen significantly, which in turn has contributed to increase in non-performing assets (NPAs) of the banking sector, particularly, the PSBs. Using the panel regression technique, the study finds that the corporate debt vulnerability is an important determinant of the growth of NPAs along with other factors such as debt concentration, corporate sales growth, lending to sensitive sectors, bank profitability, bank size and the efficiency of banks.

Differentiating Adopters and Non-adopters of Smart Cards: Comparative Analysis of Public, Private and Foreign Sector Banks in India

2013 ◽  
Vol 38 (3) ◽  
pp. 67-78
Author(s):  
Kamalpreet Kaur ◽  
Mandeep Kaur
Keyword(s):  
Smart Card ◽  
Banking Sector ◽  
Smart Cards ◽  
Payment Systems ◽  
Progressive Development ◽  
Reserve Bank ◽  
Financing Pattern ◽  
Indian Banks ◽  
Asset Quality ◽  
Different Characteristics

Progressive development in the field of information technology (IT) has brought in remarkable changes in the products as well as methods of payment and settlement system in the banking sector. In India, various types of payment systems are functioning apart from the traditional payment systems where the instruments are physically exchanged and settled manually. Smart cards are a new form of retail payment instrument, installed to facilitate retail transactions through electronic means. In 1999, the Reserve Bank of India issued guidelines to the banks regarding introduction and usage of smart cards. Smart cards are currently being issued by several banks in India which have tied up with Financial Information Network and Operations Ltd. (FINO). The IDBI bank has introduced its smart card called MoneySmart; Corporation Bank has issued CorpSmart; and Bank of India has issued its e-purse cards. PNB, SBI, ABN Amro, ICICI Bank, Bank of Baroda and some other banks have also launched smart card-based banking solutions (Kaur & Kaur, 2008). The main objective of this study is to identify the factors that may vary between the adopters and the non-adopters of smart cards in Indian banks. Banks that have adopted the cards may have different characteristics from those that have not yet adopted the cards. In other words, with the exploration of various characteristics of the banks, the study tries to differentiate between the adopter and non-adopter categories of the banks regarding smart cards with respect to their profitability, size, competitive advantage, efficiency, asset quality, financing pattern, diversification, cost of operations, etc. The empirical results evidently reveal that the banks providing smart cards differ in their characteristics from that of the banks that have not yet adopted it. It shows that the banks that adopted smart cards are larger in size, more efficient, pay lesser wages, and have more industry advantage and thus, in terms of some characteristics, outperform the non-adopter banks.

Indian Banking Sector Reforms: Review and Prospects

2005 ◽  
Vol 8 (2) ◽  
pp. 167-189 ◽  
Author(s):  
Tae Hwan Yoo
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Foreign Exchange ◽  
Banking Sector ◽  
Banking Industry ◽  
Indian Government ◽  
Reform Policy ◽  
Public Sector Banks ◽  
Positive Effects ◽  
Interest Rate Deregulation

Development in the financial sector, in particular, the banking sector, plays a key role in stimulating and stabilizing economic growth. Since the foreign exchange crisis in 1991, India has undertaken banking sector reforms. This paper focuses on the following two issues. First, I provide an overview of development in the banking sector over the years, especially after the implementation of the reform policy programs. In order to show the evolution of the Indian banking sector, I examine the reserve ratios reduction, interest rate deregulation, and ratios of non-performing assets. Second, this paper investigates the performance of banking groups by comparing the degree of profitability, and the soundness and efficiency of banks in India. In conclusion, while reform policies have had positive effects on the performance of banks, especially Public Sector Banks in India, the Indian government has to take further steps to deregulate and liberalize the banking industry.

Diffusion and Adoption of Credit Cards in Indian Banking Sector

2018 ◽  
Vol 1 (2) ◽  
pp. 1-20
Author(s):  
Dr. Mandeep Kaur ◽  
Dr.Kamalpreet Kaur
Keyword(s):  
Credit Card ◽  
Banking Sector ◽  
Credit Cards ◽  
Annual Reports ◽  
Banking Services ◽  
Time Period ◽  
Dichotomous Variable ◽  
Reserve Bank ◽  
The Status ◽  
Reserve Bank Of India

The study emphasizes on the identification of factors, which may have influenced the banks to adopt credit cards along with their traditional banking services. Bank specific variables were investigated to deepen the understanding on the diffusion and adoption of credit cards. The data relating to sampled banks’ characteristics have been collected from database of Reserve Bank of India. To know about the status of the bank regarding its adoption of credit card, the websites and annual reports of the banks were explored during different intervals of time period of the study. The study considers the dependent variable i.e. adoption of credit cards as dichotomous variable, whether or not a bank renders the credit card services, denoting 1 if the bank has adopted credit card otherwise 0. The logistic regression has thus been applied to get the valid and reliable results. The empirical findings reveal that, size, non-interest income, non performing assets, profitability, age and market share of the bank are the variables which have contributed significantly in the diffusion and adoption of credit cards.

Analysis of Banking Industry by Using Camel Model with Special Emphasis on Selected Indian Public Sector Banks

2016 ◽  
Vol 11 (02) ◽  
Author(s):  
Mamta Shah ◽  
Mahua Dutta
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking Industry ◽  
Financial Sector ◽  
High Rate ◽  
Public Sector Banks ◽  
The Face ◽  
Growing Economy ◽  
Domestic Inflation ◽  
Model Approach

India is among the fastest growing economy in the world. The growth of any economy is largely depending on its financial sector. One of the components of financial sector is the banking sector. The growth of banking industry plays a major role in the development of that economy. If we go to past we can see that over the couple of years the Indian Banking sector has shown a high rate of buoyancy in the face of high domestic inflation, rupee depreciation, and due to fiscal uncertainty. Even our central bank has adopted various measures to stimulate growth and overall development of the sector. The present paper discuss the analysis of banking industry specially our public sector banks by using CAMEL model approach.

Performance of banking industry in Bangladesh: Insights of CAMEL rating

2017 ◽  
Vol 04 (02n03) ◽  
pp. 1750006 ◽  
Author(s):  
Syed Moudud-Ul-Huq
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Rating System ◽  
Managerial Ability ◽  
Strategic Plans ◽  
Composite Rating ◽  
Asset Quality

This study attempts primarily to measure the financial performance of banking industry of Bangladesh for the periods 2013–2014 and to rate them according to the composite rating system. For this purpose, 10 private commercial banks (PCBs) have been selected from 38 PCBs. CAMEL has critically analyzed the financial performance of these banks. This finds that most of the banks get 2.14 with an average rating of composite range, where only Eastern Bank Ltd. gets “Strong” rating, seven PCBs get “Satisfactory” rating, AB Bank Ltd. and City Bank Ltd. lay middle of the range of composite score. From this ground, it is clearly reflected that most of the PCBs in Bangladesh have performed quite satisfactorily in recent years. The performance of most banks is dependent more on the managerial ability in formulating strategic plans and the efficient implementation of its strategies. Maintenance of asset quality is the major challenge in this year and is feared to remain so in 2014. The banking sector in Bangladesh has passed somewhat an average year regarding governance, profitability and soundness in 2013. Finally, it is recommended that the banks should be more careful to ensure the quality of assets and its uses, and increased their efficiency in managerial grids.

Decoding the Paradox of Dividend Policy: An Empirical Study on Indian Banking Sector

2018 ◽  
Vol 4 (2) ◽  
pp. 113-128
Author(s):  
B. Chandra Mohan Patnaik ◽  
Chandrabhanu Das
Keyword(s):  
Public Sector ◽  
Dividend Policy ◽  
Banking Sector ◽  
Banking Industry ◽  
Liquidity Constraints ◽  
Managerial Efficiency ◽  
Public Sector Banks ◽  
Dividend Payments ◽  
The Government ◽  
High Level

The dividend policy has often been treated as the most complicated and intriguing aspects in corporate finance. Profitability was always cited as the main source of confidence for dividend payments. Numerous articles written on the dividend policy explored several of its other determinants. The most popular Lintner’s Dividend Model has been assessed and applied by researchers in different sectors including the banking sector in India. The results from the banking sector also confirmed to a greater extent the accuracy of Lintner’s Dividend Model. Although Lintner’s Dividend Model had its firm footing in the Indian banking industry, the model has not much explored about liquidity constraints, ownership and managerial efficiency. The above-mentioned predictors are important in the present scenario where many public sector banks paid dividends while having high nonperforming assets. Recently the government has announced a dividend cut for 16 public sector banks due to high level of stressed assets. Hence, profitability and stressed assets are the paradoxical aspects in the dividend policy for the banking industry. Findings from this study have evidence of substantial influence of liquidity constraints, ownership and managerial efficiency and their influence on the dividend policy.

scholarly journals Global Crisis: Problems and Prospects for Indian Banking Industry

2011 ◽  
Vol 2 (4) ◽  
pp. 171-176 ◽  
Author(s):  
R. K. Uppal
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Banking Industry ◽  
Foreign Banks ◽  
Global Crisis ◽  
Time Period ◽  
Banking Reforms

The present paper analyses the efficiency of all the bank groups in the post- banking sector reforms era. Time period of the study is related to second post-banking sector reforms (1999-2000 to 2005-06). This period has been chosen taking into consideration the following factors; On the basis of some parameters of efficiency i.e. profitability per employee, per branch, business per employee, per branch and expenses per employee and per branch, the paper concludes that efficiency of all the bank groups has increased in the second post-banking reforms period but these banking sector reforms are more beneficial for new private sector banks and foreign banks. At the end, paper suggests some measures for the improvement of efficiency of Indian nationalized banks.

scholarly journals IDENTIFYING KEY BARRIERS TO CUSTOMER RETENTION IN BANKING SECTOR OF PAKISTAN

2017 ◽  
Vol 13 (1) ◽  
pp. 133-147
Author(s):  
Zaid Bin Khalid ◽  
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Customer Retention ◽  
Extensive Literature ◽  
Interpretive Structural Modeling ◽  
Top Managers ◽  
Time Period ◽  
The Matrix ◽  
Cross Reference ◽  
Practical Implications

Objectives- The purpose of this research is to find out the barriers to customer retention in banking sector of Pakistan. This paper aims to enhance the understanding about the barriers that influence the customer retention in banking organizations. Methodology – A qualitative mathematical based technique called interpretive structural modeling (ISM) is employed to identify the barriers and to understand interaction and mutual relationships among them. Findings – Seven barriers to customer retention are identified through extensive literature review and subsequent opinions of experts from banking industry and academia. Contextual relationships have been established and ISM based model is developed to represent the mutual interaction among diagnosed barriers. The matrix cross-reference multiplication applied to a classification (MICMAC) analysis has also been carried out to classify the nature of barriers according to their dependence and driving power. Practical Implications – The adoption of ISM based hierarchical model in this study would help in understanding the barriers and provide useful insights to top managers and policymakers of banking sector who want to focus and minimize these barriers in order to retain their customers for a longer time period.

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