study on impact of PSL on gross NPAS of nationalised banks: an empirical approach

In order to encourage banks to lend more to neglected areas of the economy, the idea of a priority sector was introduced. These priority sectors add significantly to gross domestic product but have not received sufficient finance to function adequately. However, lending in the priority sector is not very warmly welcomed by the banks, particularly nationalized banks in India, as they generate more nonperforming assets than other sectors. It is the priority sector that contributes to the biggest default. As far as NPAs on account lending to the priority sector are concerned, it has been observed that there are inefficiencies in this sector, such that the fresh loans turning bad. Thus, our study examines the impact of non-priority sector loans on the rise of NPAs in the nationalized banks.

Are Banks in India Diversified Enough, Geographically, Across States and Economic Sectors?

This article, the first of its kind for the Indian economy, constructs lending environment portfolios of economic activities that banks in India have been faced with, for four Indian banking groups based on the extent of their operations in terms of their deposit shares in each state and the lending-portfolio mix of economic activities in those states. For empirical analysis, data on seven components of gross domestic product and state gross domestic product for 29 states from 1980–1981 to 2016–2017 were taken. The results reveal that the portfolio variances (risk) of the bank groups have declined in the last three decades. Compared to domestic private banks, the State Bank of India group and nationalised banks seem to have significantly reduced their environmental portfolio variability. Simulations to grasp the reasons for this geographic risk reduction show that structural economic reforms introduced in the early 1990s seem to have contributed more than changes in the banking structure in reducing the portfolio risk of banks.

Review for Performance Of Indian Nationalised Banks

The banking industry in India overall is making huge commitments to the improvement of the economy and assisting with accomplishing economical growth. The banks are helping the economy regarding successful capital arrangement, viable loaning, and adding to the improvement of the country, in this way banks should be all the more firmly watched. In India, banks are probably the best entertainer on the planet banking industry seeing colossal seriousness, growth, productivity, benefit, and adequacy, particularly lately. The principle objective of banks today is to guarantee solidness and ensure that they are inside sound and reasonable. Subsequently, it is imperative to quantify sufficiency across different banks in the country and distinguish the more fragile segments of the banking area, devise suitable systems and approaches to lift these areas, and in the end, establish a climate that leads banks to be sound and results in instability.

Exploring the effect of intellectual capital on financial performance: a study of Indian banks

Purpose The purpose of this paper is to inspect the effect of intellectual capital (IC) on the financial performance (FP) of Indian banks. Design/methodology/approach The study uses the data of 58 Indian banks, namely, 20 nationalised banks, 17 private Indian banks and 21 private foreign banks, for the period between 2009 and 2018. A modified value-added intellectual coefficient methodology was used for measuring the efficiency of the IC. Findings The efficiency of IC significantly enhances the profitability and productivity of the Indian banks. Overall, human capital is the most substantial component of IC in augmenting the profitability and productivity of the Indian banking industry. Structural capital and physical capital are vital only for improving profitability while the contribution of relational capital towards the banks’ FP is nominal. The result also shows that amongst the three categories of Indian banks, private foreign banks are most efficient in leveraging their IC. Research limitations/implications The study results are only restricted to Indian banks and the data of only 58 banks are used for drawing the inferences. Originality/value The paper fills the void in the existing literature of IC and corporate FP by using the data set of Indian banks divided into the public sector, private Indian and private foreign banks.

A critical review of non-performing assets in the Indian banking industry

Purpose The level of non-performing assets (NPAs) best indicates the soundness of the banking sector of a country. The purpose of this study is an effort to look into the contribution of the different banks individually to the NPA in the industry by looking into its growth pattern during the period 2010-2017. Further, the study is made to look into the effect of different groups of banks, namely, State Bank of India (SBI) and its associates, nationalised banks and private sector banks on the banking industry in this regard. Design/methodology/approach The individual private sector banks, nationalised banks and SBI and its associates have been considered for the purpose of the study. The analysis is based on secondary data collected from the Reserve Bank of India website for the period 2010-2017. The geometric mean has been used as a statistical tool for arriving at the mean growth rate of gross NPAs. Further, refinement of the result is done by comparing the growth of gross NPAs of individual banks with that of the average growth rate. Findings The assessment of private sector banks reveals that the growth rate of NPAs is low as compared to the nationalised banks, as well as the SBI and its associates. The nationalised banks and the associate banks of SBI failed to handle the issue of poor loans effectively due to which the growth in such loans has been phenomenally high. Originality/value The research is interesting as the study period follows the financial crisis. There is no such previous study that has looked at the perspective of banking from this angle. The research is valuable from two angles. Firstly, it brings to light the situation of the different categories of banks with regard to NPAs. Secondly, the information can be useful for investors as the issue of poor loans is a relevant one for them because it has an impact on the profitability of banks and thereby the future prospects.

Knowledge Management Process and Innovation in Indian Nationalised Bank

In present days, knowledge management has become the important concept and necessary to employ for the success of firm. This research paper depicts the framework to understand the knowledge management process that impact the innovation in a bank. In current scenario, future of any firm will be based on employment of knowledge management at right time leading to innovation. The impetus of the study is to recognize the influence of knowledge management process on innovation in Indian nationalised banks. The component of knowledge management process acknowledged as knowledge acquisition, knowledge transfer, knowledge integration and knowledge application were tested using structural equation model. 209 response were gathered from the respondent working in Indian nationalised bank in Lucknow through data gathering instrument. The finding reveals that all component of knowledge management process significantly impacts the innovation except knowledge acquisition. Knowledge transfer is significant predictor among the component of knowledge management process.

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

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.

Non Performing Assets: A study of Pithoragarh District Co- Operative Bank Ltd (Uttarakhand)

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.