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Dr. T. VINILA. "FOREIGN BANKS IN INDIA." EPH - International Journal of Humanities and Social Science 2, no. 3 (August 4, 2017): 1–10. http://dx.doi.org/10.53555/eijhss.v2i3.19.
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Narasimham Committee in 1991 and the licensing of the new private sector banks through the next two decades inaugurated an era of change. Meanwhile, the opening-up of the economy to increased participation by foreign players created greater opportunities for foreign banks to work with their multinational clients in India. In the more recent past, foreign banks have followed Indian corporate entities in their outbound expansions. The survival of the banking system in India through the financial crisis has demonstrated its strengths and most foreign banks present in India believe that India is a market with undeniable potential.
After the setting up of Foreign Banks in India, the banking sector has become competitive and customer friendly. In that, four foreign banks have set up shop in the recent past. At present, there are 43 foreign banks operating in India with a network of 334 branches.
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Chowdhury, Arnav. "Factors Affecting Customer Satisfaction in Public Sector Banks (With Special Reference to State Bank of India)." International Journal for Research in Applied Science and Engineering Technology 9, no. 10 (October 31, 2021): 398–402. http://dx.doi.org/10.22214/ijraset.2021.38422.
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Abstract: Public sector banks in India play a vital role in the Indian economy, especially State Bank of India, as it is the largest public sector Bank in the country. However, gone are days when SBI was the only option for most of the people in India. With emergence of Private Sector Banks and other Public sector Banks, customer satisfaction plays an important role now a days. This research is all about finding the Factors affecting customer satisfaction in public sector banks with special reference to State Bank of India. Keywords: customer satisfaction in banks. State Bank of India, Banks in India, public sector banks customer satisfaction.
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Kandela, Peter. "India: HIV banks." Lancet 338, no. 8764 (August 1991): 436–37. http://dx.doi.org/10.1016/0140-6736(91)91050-5.
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Budhedeo, Shradha H. "Short Term Liquidity of Foreign Banks in India." Asian Review of Social Sciences 7, no. 2 (August 5, 2018): 90–96. http://dx.doi.org/10.51983/arss-2018.7.2.1428.
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Foreign banks have been associated with India for almost two centuries now. Yet, there presence has been prominently felt after the recommendations of the Narasimham Committee on financial sector reforms ushered a competitive era that triggered the entry of new private and foreign banks into the country. Foreign banks have always adapted well to the changing financial landscape in India. They have been offering products and services that suit the Indian way of living and enterprise, providing cross-border borrowings, capital and access to global markets. Foreign banks have made considerable contribution to the banking sector over time by bringing capital, technology, efficiency and best global practices to India. The present study examines the foreign banks in India for their liquidity management capacity and liquidity performance over the post financial crisis period. The liquidity of selected Indian foreign banks has been evaluated on the basis of their short-term liquidity ratios. The foreign banks fail to meet the preferred requirements of short-term liquidity parameter for the banking sector. Nonetheless, in relative terms, Citibank shows much better liquidity management in the short-term as compared to HSBC and Standard Chartered banks.
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Vinila, T. "Progress of Foreign Banks Vis-À- Indian Banks." IRA-International Journal of Management & Social Sciences (ISSN 2455-2267) 5, no. 2 (December 12, 2016): 341. http://dx.doi.org/10.21013/jmss.v5.n2.p12.
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<div><p><em>A review of comparative<strong> </strong>progress made by the foreign banks in India vis-à-vis their counterpart Indian banks in terms of basic banking performance indicators for a 15 year period commencing from 1999-2000 is made in this Chapter so as to trace their status, strengths and limitations so far as their operations in India are concerned. The basic performance indicators that are taken into consideration are number of employees working, deposits, advances, branches, income and expenditure, profit, etc. It is to further mention here that the entire period of study is divided into three comprising each of five year duration so as to observe periodical trends and appropriately compound growth rates for each period are calculated for logical analysis and interpretation. </em><strong><em></em></strong></p></div>
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Dawar, Gaurav, and Swati Goyal. "OWNERSHIP STRUCTURE & RISK IN INDIAN BANKS: A COMPARISON OF PRIVATE AND PUBLIC BANKS." INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY 1, no. 1 (May 30, 2012): 7–12. http://dx.doi.org/10.24297/ijmit.v1i1.1453.
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Banking sector is one of dominant sector and represents growth and development of the economy. The sector has been one of the top performers in stock market. Indian Stock Market experienced great volatility during the period of 2007-2008. The study is about the ownership structure and risk in Indian banks which they encountered during the period of slow down in India. This paper examines the effect of ownership on performance and risk of commercial banks in India during the period 2000-2009. The study would examine whether there exists any significant difference in the performance and risk among Public and sector banks and effort has been made to evaluate the performance of bank before and after the period of 2007-2008 to evaluate and understand the ground reality in Indian banking sector. The study investigated that whether any significant difference exists in the performance and risk of ownership groups of private & public banks in India. Regression results would be used to examine the association between the size of the banks and non-performing loans, and between demand deposits & risky loans.
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Sachan, Amit, Anwar Ali, and Rajen K. Gupta. "DENA BANK — Competing with Private and Foreign Banks." Asian Case Research Journal 11, no. 01 (June 2007): 117–39. http://dx.doi.org/10.1142/s0218927507000898.
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Since 1995 with the increasing importance of the service sector, liberalization policy and information technology revolution, the banking sector as a whole had undergone significant changes in India. The case presents a brief outline of the developments which happened in the Indian banking sector and discusses Dena Bank's efforts in the last decade in the area of customer service. The case explores how customers interacted with banks, how banks made money, how external environment was changing the core activities and core assets of banks in India and the opportunities and challenges arising out of all these. The case ends with the question on what Dena's strategy should be in response to the new competition and new technologies. The case is useful in looking at strategic responses to changes.
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Doshi, Archi, Geeta Sharma, and Namrata Ladha. "Dynamics of Income Diversification, Profitability, and Risk: Analysis of Public and Private Sector Banks in India." ECS Transactions 107, no. 1 (April 24, 2022): 4503–16. http://dx.doi.org/10.1149/10701.4503ecst.
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“Do not put all eggs in one basket.” This risk management principle applies to every other industry whether it be manufacturing or banking. Interest income is believed to be a bank's primary source of income. Banks diversify their operations to generate non-interest income and lower their total risk exposure. Applying panel-data regression, the study analyzes and compares the intensity of diversification of income sources between public and private sector banks in India, using secondary data for Indian financial years 2012-13 to 2020-21. It utilizes RAROA and Z-Score to examine the impact of income diversification on profitability and risk, respectively. It discovered that private banks are more diversified than public banks. With low levels of diversification, public banks had a positive impact on profitability and risk. This is evident from research that banks leverage income diversification as a tool to fight COVID-19 backed slowdown.
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Kumar, Mahendra, and Anjali Gokhru. "A COMPARISON OF CSR PRACTICES OF SELECTED INDIAN AND FOREIGN BANKS." International Journal of Management, Public Policy and Research 2, SpecialIssue (January 29, 2023): 25–31. http://dx.doi.org/10.55829/ijmpr.v2ispecialissue.113.
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The Companies Act, 2013, which was passed in India, formalised corporate social responsibility (CSR). In a developing nation like India, corporate social responsibility is crucial. Companies that participate in CSR typically have a stronger impact on the neighbourhood. When CSR is practised, both the public's opinion of a company and its standing in the marketplace are enhanced. By taking deposits and disbursing money to other industries and people, banking institutions in India's service sector support the national economy. Public banks are free to donate to a fund for CSR initiatives even if it is not required by law for them to do so. It is intriguing to see how Indian banks use CSR funds wisely. Exploring a few Indian domestic and foreign banks' CSR practices. In this article researcher has been selected top 3 foreign banks working in India, 3 private banks and the top 3 public banks contributing to CSR.
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Nguyen, Thanh Pham Thien. "Comparison of efficiency and technology across the banking systems of Vietnam, China and India." Benchmarking: An International Journal 25, no. 9 (November 29, 2018): 3809–30. http://dx.doi.org/10.1108/bij-04-2017-0078.
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Purpose Given some similarities in the banking industry and economic condition across Vietnam, China and India, the purpose of this paper is to estimate and compare the cost and revenue efficiency of banks across these three countries over the period 1995–2011. Design/methodology/approach This study employs the meta-frontier of Battese et al. (2004) and O’Donnell et al. (2008) which envelops the three country-frontiers to measure the cost and revenue efficiency of banks in these three countries. Findings This study finds that Chinese banks adopt the most advanced cost-reducing and revenue-increasing technology when providing banking products to their customers, followed by Indian banks. Indian banks are as cost-efficient as Chinese banks, but more cost-efficient than Vietnamese banks. Indian banks are as revenue-efficient as Vietnamese banks, but less revenue-efficient than Chinese banks. Over the analysis period, banks in the three countries have employed the more advanced technology in reducing costs, and they have become more cost-efficient. Nonetheless, for revenue side, the improvement in revenue efficiency and adopted technology are observed only in Chinese banks. The main source of meta-cost and meta-revenue inefficiency of these banking systems stems from undertaking inferior technology rather than managerial ability. Results from comparison across bank types show that state-owned banks (SOBs) are more cost and revenue-efficient than privately owned banks, with Indian and Chinese SOBs being the most cost- and revenue-efficient, respectively. Practical implications To improve meta-cost efficiency, Chinese and Indian banks would constitute a relevant benchmark for Vietnamese banks, while to improve meta-revenue efficiency, Chinese banks would be considered as a relevant benchmark for Vietnamese and Indian banks. Originality/value This is the first study which utilizes meta-frontier to compare cost and revenue efficiency and technology across banks in Vietnam, China and India.
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Gupta, Sumeet, and Renu Verma. "Comparative Analysis of Financial Performance of Private Sector Banks in India: Application of CAMEL Model." Journal of Global Economy 4, no. 2 (June 30, 2008): 160–80. http://dx.doi.org/10.1956/jge.v4i2.124.
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Banking in India is mature in terms of supply, product range and reach-even in rural India through rural banking and remote banking. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets. The present research work analyses the overall financial performance of major private sector banks in India through application of CAMEL Model. Besides it also attempts to compare the performance of these Banks with the help of Composite Ranking Method.
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Mani, Mukta, and Rachit Agarwal. "Payment Banks in India." International Journal of Asian Business and Information Management 13, no. 1 (January 2022): 1–15. http://dx.doi.org/10.4018/ijabim.297851.
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Payment banking system has been established in India with the main objective of financial inclusion and promotion of digital transactions. After 2 to 3 years of their coming into picture, the model is being criticized on various grounds. Studies imply that the payment banks are struggling to succeed because of tough competition with commercial banks and their basic structure. This study is an attempt to analyze the position of payment banks on the basis of customers perception. A primary survey has been carried out through a well-structured questionnaire. The results put forward that customers adore payment banks for their easy, convenience, safety and speed. The male and female users of young and middle age are equally liking and using the payment banks. They widely use these banks for making mobile recharge; ticket booking and bill payments etc. but they don’t use them for all their banking transactions. This study provides an insight into the ground realities related to payment banks. Thus it might be useful for Payment bankers and policymakers for their future decision making.
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Rahmatullah. "Islamic banks in India." Institute of Muslim Minority Affairs. Journal 13, no. 2 (July 1992): 317–24. http://dx.doi.org/10.1080/02666959208716251.
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Brahman, Beena Sagarmal. "Performance Evaluation of Bank of India and Union Bank of India with Respect to Priority Sector." INDO-ASIAN JOURNAL OF FINANCE AND ACCOUNTING 3, no. 2 (2022): 161–74. http://dx.doi.org/10.47509/iajfa.2022.v03i02.08.
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It is been said that India is an agricultural country. And an Indian banking industry plays a significant role in flourishing the Indian agricultural industry. The commendable contribution of the banking sector is one of the major reasons for the upliftment of agricultural industry as a whole. As per National Statistical Office, agricultural sector contributes 20.19% to the total economy of India. Reserve Bank of India has taken an initiative specifically to foster the growth of priority sector. Establishment of Regional Rural Banks is an outcome of those reforms taken place in the banking industry. Even the major players of the Public Sector Banks are indulged vigorously to support rural India. A researcher here has put in efforts to understand and analyze the contribution and role of Bank of India and Union Bank of India in this noble initiative of Government of India. Exponential Growth rate has been considered as a tool to check the intensity of financial contribution of both banks in the upliftment of rural India.
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Kaur, Navneet, Santosh Shrivastav, and Sarbjit Singh Oberoi. "Ownership Structure, Size, and Banking System Fragility in India: An Application of Survival Analysis." Economics 16, no. 1 (January 1, 2022): 1–15. http://dx.doi.org/10.1515/econ-2022-0014.
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Abstract The Reserve Bank of India has put 11 public sector banks under prompt corrective action and is planning to put three more where public sector banks constitute 68.9% of the total asset of the Indian banking industry based on 2018 figures; this raises a genuine concern for the financial health of the Indian banking sector as a whole. Under these considerations, this study is conducted to estimate the survival of banks based on ownership and size and uses the Cox proportional hazards model. This study has not found any significant difference in the failure risk of both public and private sector banks based on ownership. However, the study found a significant difference in the failure risk of banks based on size. The smaller banks are indeed at a higher risk of failure than larger banks. The findings of this study can be used to create an early warning system for smaller banks in India.
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Dr. Dilip Kumar Gupta, Dr Sapna Kasliwal,. "Small Number of Big Banks: An Overview of Recent Mergers in Indian Banking Sector." Psychology and Education Journal 58, no. 3 (February 25, 2021): 1113–23. http://dx.doi.org/10.17762/pae.v58i3.3108.
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Government of India with its vision to create globally competitive banks has initiated the consolidation of smaller PSB’s in bigger entities. The merger of five regional banks with State Bank of India and merger of two Public Sector Banks (PSBs) Dena and Vijaya with Bank of Baroda in recent past (2019) followed by mega consolidation plan of merging ten public sector banks into four banks is an indication of direction of the wind is going to blow for Indian banking industry. This policy of consolidation is an important tool used by banks for corporate restructuring and is in line with reformist agenda pursued by Govt of India (GOI) since 1990. These entities are to receive recapitalization funds from GOI to boost their net-worth strengthening their capital base. The present research is conducted to understand the objectives and statistics behind these mergers.
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Limbad, Shaileshkumar Jausukhbhai, and Vinod Patel. "Measuring Performance towards Customer Relationship Management Practices in Indian Banking Sector: Study of Conceptual Theories and Focus on Developing CRM Model." Cross Current International Journal of Economics, Management and Media Studies 1, no. 4 (July 18, 2019): 87–93. http://dx.doi.org/10.36344/ccijemms.2019.v01i04.001.
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The intensive competition between retail banks in India and all the banks realized the needs for protecting existing customer base. Maintaining customer relation and build a loyalty has become a business strategy, and banks also realize that customer lifetime value identifies the value of a long-term relationship. This study mainly focused on types of CRM practices deployed in Indian banking sector and the changes needed with evaluation and cut throat competition. It helps to increase the ability to serves customer better and to improve the marketing productivity. It will also help to understand the effectiveness of CRM practices adopted by the various banks. With the theoretical and conceptual background of Customer Relation Management, the present study intends to focus on customers‟ perception towards performance on CRM practices by Indian commercial banks including Public, and Private Sector Banks. There are some research gaps exist in measuring the CRM effectiveness in past; and with special reference to its modern applications in banking organization in present. Many studies done on multiple aspects but dynamic aspects of CRM practices make it older. This research study aims to measure customer perception towards CRM practices apply by various Indian commercial banks, A broad comparison is also attempted between the CRM practices of India‟s top 3 Public Sector Banks and India‟s top 3 Private sector banks. So that here researcher tries to evaluate different models and relationship between different service parameters of CRM
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Inoue, Takeshi. "Financial inclusion and poverty reduction in India." Journal of Financial Economic Policy 11, no. 1 (April 1, 2019): 21–33. http://dx.doi.org/10.1108/jfep-01-2018-0012.
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Purpose This paper aims to investigate the impacts of financial development through commercial banks on poverty conditions in India. Design/methodology/approach Using unbalanced panel data for Indian states and union territories from 1973 to 2004, and applying the generalized method of moments estimation, the author estimates models in which the poverty ratio is explained by financial inclusion and financial deepening for public sector banks and private sector banks, respectively. Findings The results show that financial inclusion and deepening have statistically significant negative relationships with the poverty ratio for public sector banks, but not for private sector banks. In addition, the coefficients of the interaction term between financial inclusion and deepening are estimated to be negative and statistically significant in most cases of public sector banks. Considering the positive impacts of financial inclusion and deepening on poverty reduction, this result implies that promoting breadth and depth of public sector banks could have a synergistic effect on poverty reduction in India. Originality/value First, unlike previous studies, the author applies both the numbers of bank branches and accounts as the measure of accessibility and usage of banking services. Second, using the interaction term between financial inclusion and deepening, the author empirically analyzes whether, and to what extent, the breadth and depth of the banking sector interact with each other in the process of poverty reduction. Third, the author divide the Indian commercial banks into public sector banks and private sector banks and compares their impacts of financial inclusion and deepening on poverty conditions.
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Tiwari, Ranjit, and Harishankar Vidyarthi. "Intellectual capital and corporate performance: a case of Indian banks." Journal of Accounting in Emerging Economies 8, no. 1 (February 5, 2018): 84–105. http://dx.doi.org/10.1108/jaee-07-2016-0067.
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Purpose The purpose of this paper is to explore and explain the linkage between intellectual capital (IC) efficiency of banks and their performance. Design/methodology/approach In total, 39 public and private banks listed in Bombay Stock Exchange from 1999 to 2015 were considered for the study. Panel fixed effects technique is used to draw inferences. Findings Results of the study provide evidence of positive association between IC and performance of banks; however, only human capital and structural capital have shown instances of significant positive linkage with banks performance. The results also indicate that the IC efficiency of private sector banks is better than public sector banks in India. Practical implications This study may enable Indian banking firms to measure their IC efficiency and develop policies to promote and improve upon their intellectual potential to enhance banks performance. Originality/value It is a novel study in Indian context that considers interaction variables in extending the prior understanding of the role of IC in enhancing banks performance, which may build sustainable advantage for banks in emerging economies like India.
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R, JAYASHREE, and Dr S. JAYAKANI. "ADAPTIVE STRATEGIES FOR DIGITAL TRANSFORMATION: A COMPARATIVE STUDY OF BANKING INNOVATIONS AND ROADMAP FOR BANKS IN INDIA." INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT 07, no. 09 (September 1, 2023): 1–11. http://dx.doi.org/10.55041/ijsrem25884.
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This research paper explores adaptive strategies employed in digital transformation within the banking sector, presenting a comparative analysis of innovative practices and proposing a roadmap for banks in India. The digital era has prompted banks to reinvent their operational paradigms, necessitating agile approaches to remain competitive. Through an in-depth examination of banking innovations across global contexts, this study elucidates diverse adaptive strategies that institutions have undertaken to navigate digital transformation challenges. Focusing on the Indian banking landscape, the paper examines the unique dynamics and challenges faced by banks in this rapidly evolving market. By scrutinizing successful case studies from both domestic and international banks, it identifies key drivers and barriers for digital transformation adoption. Synthesizing these insights, the study develops a comprehensive roadmap tailored specifically for banks in India, offering a strategic framework to guide their digital transformation journey. The findings of this research focus on effective strategies, organizational restructuring, technological integration, and customer-centric initiatives that can be harnessed by Indian banks to achieve sustainable and impactful digital transformation. By synthesizing global best practices with local nuances, the proposed roadmap provides a robust guide for banks in India to not only adapt to the digital age but also thrive within it.
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Bansal, Rohit, Arun Singh, Sushil Kumar, and Rajni Gupta. "Evaluating factors of profitability for Indian banking sector: a panel regression." Asian Journal of Accounting Research 3, no. 2 (October 8, 2018): 236–54. http://dx.doi.org/10.1108/ajar-08-2018-0026.
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Purpose The purpose of this paper is to quantify several measures to examine the determinants of profitability for the listed Indian banks. The authors include both public sector (PSUs) and private sector’s banks in the study. The authors have taken all the banks that are registered on the Bombay stock exchange (BSE) in the sample. This paper also intends to identify the association between the net profit margin (PM) and return on assets (ROA) with the several other independent variables of the Indian banking sector including private banks and public banks over the past six years starting from April 1, 2012 to March 31, 2017. Therefore, a sample of 39 listed banking companies and total 195 balanced observations are selected for the analysis purpose. Design/methodology/approach The authors have used profitability as a dependent variable represented by net PM, ROA and several financial ratios as independent variables. Financial statement and income statement of all listed banks were obtained from BSE and particular company’s website. Panel data regression has been analyzed with both the descriptive research techniques, i.e., fixed effects and random effects. The authors also verified both panel techniques with Hausman’s specification test, which is a widely used procedure for selecting a panel effect. The authors applied PP – Fisher χ2, PP – Choi Z-statistics and Hadri to testing whether the data set is free from unit root problem and data set is a stationary series. Findings Results imply that interest expended interest earned (IEIE) and credit deposit ratio (CRDR) reduced the profitability of private banks in India. IEIE, CRDR and quick ratio (QR) reduced the profitability of public banks in India, while cash deposit ratio (CDR) and Advances to Loan Funds (ALF) increased the effectiveness of public banks. Under the total banks IEIE, CRDR reduced the profitability, on the other side, CDR, ALF and Total Debt to Owners Fund (TDOF) increased the profitability of total banks in India. Under the dependency of ROA, CRDR and TDOF reduced the return of private banks in India, while CDR, ALF and QR enhanced the profitability of private banks. Originality/value No variables found significant under public banks while taking ROA as a dependent variable. Under the overall banking data, CRDR reduced the profitability. On the other side, capital adequacy ratio and ALF increased the profitability of total banks in India. The findings of this study will support policy creators, financial executives and investors in constructing investment decisions.
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Kumar Basu, Udayan. "Banking in India." Foreign Trade Review 40, no. 2 (July 2005): 24–35. http://dx.doi.org/10.1177/0015732515050202.
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Commercial banks play a very important role in the economy of any country. They constitute the most useful intermediary in the financial markets, who have a vital role in ensuring the efficacy of all monetary and fiscal measures. Their continued good health and sustained viability are therefore of immense significance for any economy. Measures to ensure their well-being are of paramount importance in order to maintain a high level of investor confidence. In India, financial liberalization has opened up new vistas for the commercial banks and they can now operate as universal banks offering, under one roof, all kinds of financial services including project financing and leasing. Besides, banks are allowed to go in for investment in securities also. However, the guidelines for direct lending have not been touched so far. Consequently, there are restrictions on the ways in which banks in India can deploy their available resources. In this article, an analysis has been carried out to show how such structural restrictions translate into what is often termed as interest rate rigidities for banks. How the loan losses impact on their interest spread as well as the urgent need to improve the framework for recovery of banks' NPAs has also been gone into. Moreover, the scope for moral hazards in banks, which are limited liability entities, has been explored and need for efficient risk management as well as effective risk-based supervision for ensuring their sustained viability has been analyzed and commented upon. A cut-off risk for bankable projects has also been worked out. The findings are interesting because the analysis takes into account the real life constraints faced by the banking sector and the results reflect the realities of this sector.
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Gupta, Juhi, and Smita Kashiramka. "Identification of systemically important banks in India using SRISK." Journal of Financial Regulation and Compliance 29, no. 4 (August 7, 2021): 387–408. http://dx.doi.org/10.1108/jfrc-07-2020-0067.
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Purpose Systemic risk has been a cause of concern for the bank regulatory authorities worldwide since the global financial crisis. This study aims to identify systemically important banks (SIBs) in India by using SRISK to measure the expected capital shortfall of banks in a systemic event. The sample size comprises a balanced data set of 31 listed Indian commercial banks from 2006 to 2019. Design/methodology/approach In this study, the authors have used SRISK to identify banks that have a maximum contribution to the systemic risk of the Indian banking sector. Leverage, size and long-run marginal expected shortfall (LRMES) are used to compute SRISK. Forward-looking LRMES is computed using the GJR-GARCH-dynamic conditional correlation methodology for early prediction of a bank’s contribution to systemic risk. Findings This study finds that public sector banks are more vulnerable to macroeconomic shocks owing to their capital inadequacy vis-à-vis the private sector banks. This study also emphasizes that size should not be used as a standalone factor to assess the systemic importance of a bank. Originality/value Systemic risk has attracted a lot of research interest; however, it is largely limited to the developed nations. This paper fills an important research gap in banking literature about the identification of SIBs in an emerging economy, India. As SRISK uses both balance sheet and market-based information, it can be used to complement the existing methodology used by the Reserve Bank of India to identify SIBs.
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Vijayalakshmi, R., and J. Srinivasan. "AN OVERVIEW OF INNOVATIVE PRODUCTS AND TECHNIQUES IN BANKING INDUSTRIES." YMER Digital 21, no. 08 (August 17, 2022): 676–79. http://dx.doi.org/10.37896/ymer21.08/56.
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The financial area in India has been various changes. The banks are the life savers of the economy and assume a synergist part in enacting and supporting financial development, particularly, in emerging nations and India is no exemption. Driving supporter for GDP in India is Banking Industry. The vast majority of the banks have started to adopt an enhance strategy towards banking, with the target of making more incentive for clients in the banks. Banking in India has previously gone through a gigantic change in the years since freedom. These days we have E Banking framework alongside money notes. India's financial framework can make another instrument alongside liquidity and wellbeing. The Indian financial area where presented appearance of the card, presentation of Electronic Clearing Service (ECS) in 1990's such as “EFT, RTGS, NEFT” versatile banking, web-based banking are the different developments in banking. This paper focuses an outline of advancements in financial area. Keywords: Innovate banking. Challenges of banking, New Technological changes, Indian banking sector
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Massand, Ajay B., and Gopalakrishna B.V. "Determinants of Bank Foreign Direct Investment Inflow in India: A Dynamic Panel Data Approach." IIM Kozhikode Society & Management Review 6, no. 1 (December 19, 2016): 13–22. http://dx.doi.org/10.1177/2277975216674049.
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India received highest foreign direct investment (FDI) in the world during the first half of 2015, leaving bigger economies like the US and China behind. In the process of globalization, India has liberalized all its sectors and invited FDI in most of the sectors, albeit with a sectoral cap. Internationalization of banks is perhaps the best example of India’s globalization. There are 44 foreign banks with 300 branches operating in India having a cap of 74 per cent and 20 per cent foreign investment in private and public sector banks, respectively. The present study aims to determine the motives behind bank FDI inflow into India. To accomplish that, a county-wise panel was constructed and bank FDI data from 2001 to 2013 was analyzed through generalized method of moments, a dynamic panel data model. The result of the study shows that bank FDI follows overall FDI, indicating that foreign banks follow their clients from their home country to serve them in the host country. However, locational advantages offer them profit-making opportunities and thus play a limited role in drawing bank FDI, which contribute to the development of the Indian economy. The argument that bank FDI inflow increases during a period of crisis is not relevant in the Indian context. The study suggests increasing the FDI cap in banking sector to attract more FDI and further relax the current restrictive policy on entry of foreign banks in India.
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Moudud-Ul-Huq, Syed, Md Nazmul Islam, Abdul Gaffar Khan, Md Rostam Ali, Tanmay Biswas, and Brishti Chakrabarty. "Does business cycle heterogeneously impact on banks’ capital buffers, risk and financial stability in BRIC economies?" International Journal of Financial Engineering 07, no. 04 (November 28, 2020): 2050032. http://dx.doi.org/10.1142/s2424786320500322.
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This paper revisited the relationship between capital buffers and risk adjustments by showing the impact of the business cycle. Empirically, we used an unbalanced panel dataset from 426 banks of the BRIC countries (i.e., Brazil, Russia, India, and China) for the period 2007–2016. By using the two-step system GMM (2GMM), this study shows the results as: (i) capital buffers of Russia, India, and China behave counter-cyclically while it is pro-cyclical for Brazilian banks over the business cycle; (ii) in BRIC’s economy, credit risk, and bank financial stability is related to business cycle in counter and pro-cyclical fashion, respectively; (iii) capital buffers adjustment speed is the premier in China and India, shining banks accessibility to capital refill is much easier to Brazil and Russia. The adjustment speed is heterogeneous across countries; and (iv) financial stability in apex for the Chinese, Russian, and Indian banks apart from the Brazilian banks.
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Singh, Dr Alka. "Rising NPAs and Start Up India Initiative : A Possible Venture." International Journal of Scientific Research and Management (IJSRM) 5, no. 7 (July 2, 2017): 5892–95. http://dx.doi.org/10.18535/ijsrm/v5i7.14.
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The Indian banking sector has been facing serious problems of raising Non-Performing Assets (NPAs). The NPAs has a direct bearing on the growth and profitability of banks. The NPAs are one of the major concerns for scheduled commercial banks in India. Based on the recommendations of Narasimham committee and Verma committee, some steps have been taken to manage the NPA problem in the balance sheets of the banks. As such there was no unanimity in terms of the policies followed by various banking istitutions in resolving this problem. The figure of NPAs reflect the performance of banks. The banks unable to manage its high level of NPAs is reflective of large number of credit defaults that affect the profitability and net-worth of banks and also erodes the value of the asset. The NPAs not only affect the liquidity and profitability but also pose threat on quality of asset and survival of banks. The NPAs not only affects the profitibity of the banks but also affects the economy of the country. High level of NPAs as reflective in Indian banks is also a reflection of the state of health of the industry and trade. It is very much pertinant to reduce the NPAs in order to improve the financial health in the banking system. There may be various reasons for generation of these NPAs which may be due to improper assesment or fraud. This paper proposes a solution which in turn is also an start up India initiative to minimise the reasons for creation of these NPAs.
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Bhatia, Aparna, and Megha Mahendru. "Cost efficiency analysis of scheduled commercial banks: empirical evidence from India." Journal of Management Development 37, no. 7 (August 13, 2018): 586–602. http://dx.doi.org/10.1108/jmd-01-2017-0037.
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Purpose The purpose of this paper is to analyze and evaluate cost efficiency (CE) scores of Indian Scheduled Commercial Banks (SCBs) in India over a period of 22 years, i.e. 1991–1992 to 2012–2013. Design/methodology/approach Data envelopment analysis (DEA) – a non-parametric approach is used to calculate efficiency scores of banks. Further the efficiency scores are decomposed into technical and allocative efficiency. The differences in the efficiency scores across ownership as well as across reformatory and post-reformatory era are examined by applying Panel Tobit Regression. Findings The paper also identifies the reason for cost inefficiency among Indian banks. In addition, the nature of their return to scale of all SCBs has also been evaluated. The results of the paper depict that Indian SCBs have never achieved full CE score of 1 in any of the years of study. The dominant reason identified behind cost inefficiency is allocative inefficiency. Surprisingly, the results also highlight that SCBs exhibit higher CE scores in reformatory era as compared to the post-reformatory era. Originality/value With specific reference to India, even lesser literature is found on CE. Indian banking sector has witnessed many changes on account of liberalization, privatization and globalization (LPG). Before banks adapted to the new environment, the global financial crisis acted as a fuel to fire affecting the performance of banks. Thus, a reassessment over a longer period would help to know a wholistic view of the issue of cost inefficiency, which has always been a troubling factor for Indian banks.
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Acharya, Sanjeev, Geeta Dupatti, and Stuart Locke. "Agency Cost in India Banks." International Finance and Banking 2, no. 1 (June 28, 2015): 91. http://dx.doi.org/10.5296/ifb.v2i1.7917.
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Agency cost in Indian banks for the period 2005 to 2013, covering pre-financial crisis, crisis and post-crisis period is empirically examined in the article. It is found that the agency costs, using two measures, vary from one bank to another and change over time. The likelihood of agency cost differing between types of banks indicates that there is a low level of consistency in the results. The choice of metric used is observed to be important as different measures produce different results. The findings also indicate there is low time invariance with respect to agency costs. The source of the agency cost is attributed, at least in part, to the governance of banks during the period analysed.
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Korde, Abhay, and Kavita Laghate. "A Study of Gross and Net Non-Performing Assets of Select Public Sector Banks in India for the Period 2007-2008 to 2017-2018." Indian Journal of Finance and Banking 4, no. 1 (March 25, 2020): 42–64. http://dx.doi.org/10.46281/ijfb.v4i1.522.
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The Non-Performing Assets (NPAs) are considered as one of the important parameters for anlysing the health of the Indian Banks. The Authors have taken a look at the Literature Reviews related to the non-performing assets related studies looked into by other Research Scholars. The authors in this research study has made an attempt to study the secondary data related to Gross and Net Non-Performing Assets or Loans of select Banks in India, which is available in the public domain of the regulators of Indian Banks i.e. Reserve Bank of India (RBI) from April 2007 to March 2018 and has performed the ABC analysis as per cumulative (decreasing method) to study the performance and the management and governance of those Banks. Finally, the authors conclude that some of the select Indian Banks taken for study appear in the various Groups formulated for study i.e. Group A (Poor Performance), Group B (Satisfactory Performance) and Group C (Good Performance) are thus a matter of great concern to the economy of the country.
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Rai, Arun Kumar, Kumari Preeti Yadav, Altaf Mallik, and Piyush Gupta. "Impacts of bank mergers on shareholder's wealth." International Journal of Accounting, Business and Finance 1, no. 1 (January 1, 2022): 8–14. http://dx.doi.org/10.55429/ijabf.v1i1.16.
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We examine the effect of the news about merger of six banks into four major banks, employing the standard event study method with the market model on a sample of four bidders and six target banks. We find significant impact of merger announcement on the bidder and target banks. While the bidder banks are negatively impacted, the target banks experience positive impacts on the event day and day after, followed by negative results later on. No previous study is found to have addressed this question on how the merger announcements impact the bidder and target bank's stock returns in India.
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Yoo, Tae Hwan. "Indian Banking Sector Reforms: Review and Prospects." International Area Review 8, no. 2 (June 2005): 167–89. http://dx.doi.org/10.1177/223386590500800209.
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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.
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Munjal, Parul, and P. Malarvizhi. "Impact of Environmental Performance on Financial Performance: Empirical Evidence from Indian Banking Sector." Journal of Technology Management for Growing Economies 12, no. 1 (April 28, 2021): 13–24. http://dx.doi.org/10.15415/jtmge.2021.121002.
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There has been long-standing debate over whether or not firms gain economic competiveness from reducing their impact on the environment. Although ample literature is available on association between environmental performance and financial performance across various sectors, little empirical evidence is available in context of Indian banking sector. This research aims to analyze whether there is any significant relationship between environmental performance and financial performance of banks operating in India for a period 2013-14 to 2017-18. Secondary data has been collected for a sample of 83 banks operating in India. Content analysis was applied to extract information about environmental performance disclosed by sample banks followedby construction of environmental disclosure score index. Hierarchical multiple regression was applied to analyze relationship between environmental performance and financial performance after controlling for effects of size, financial leverage and capital intensity. Results exhibit no significant relationship between environmental performance and financial performance of banks operating in India. Findings of this research are expected to provide insight to users and readers of financial statements to have better understanding about the environmental practices carried out by banks. It would also contribute significantly towards decision making for policy makers in Indian banking sector to establish mandatory environmental legislations for reporting on environmental practices in order to improve non financial disclosure and financial performance in Indian banking sector.
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Reddy, Kalluru Siva. "Are Banks in India Diversified Enough, Geographically, Across States and Economic Sectors?" Review of Development and Change 26, no. 1 (April 23, 2021): 83–103. http://dx.doi.org/10.1177/09722661211005585.
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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.
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Banerjee, Gaurango, Abhimanyu Gupta, and Abhiman Das. "Effects of financial statement and macroeconomic factors on risk measures of banks in India." International Journal of Finance & Banking Studies (2147-4486) 11, no. 3 (September 29, 2022): 42–55. http://dx.doi.org/10.20525/ijfbs.v11i3.2009.
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This paper aims to analyse the effects of financial statement indicators and off-balance sheet items affecting risk measures among Indian banks employing both panel data regression and a non-parametric decision tree approach. We explore the effects of bank size, leverage, exposure to contingent liabilities including off-balance sheet derivatives usage and macroeconomic factors on risk measures for banks. In this paper, it is also aimed to examine the effects of the major financial liberalization policy period in the domestic market in India that started in the mid-1990s and ended around 2004 as well as impacts of the 2008 global financial crisis on the risk measures of banks operating in India. As risk measures, we present a comparative analysis of liquidity, solvency, and interest rate risk measures of Indian banks across public (government) and private ownership categories. Main findings from our study demonstrate (i) significant impact of capital adequacy and the bank size on all the risk measures, (ii) contingent liabilities (including derivatives usage) at banks is observed to significantly impact the asset management measure of liquidity risk and the solvency risk of banks, (iii) GDP growth is observed to impact the asset management and liability management measure of liquidity risk, (iv) the global financial crisis is found to have a significant impact on the liquidity risk measures and interest rate risk, but a weak effect on solvency risk of Indian banks, (v) bank ownership category (government owned versus private sector banks) is observed to have a significant impact on all the risk measures, and finally (vi) financial liberalization reforms had a highly significant effect on the liquidity risk at banks.
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Memdani, Laila. "Macroeconomic and Bank Specific Determinants of Non-Performing Loans (NPLs) in the Indian Banking Sector." Studies in Business and Economics 12, no. 2 (August 28, 2017): 125–35. http://dx.doi.org/10.1515/sbe-2017-0026.
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Abstract The main objective of the paper is to find out the determinants of NPAs in the Indian Banking sector and to study if these determinants vary across the three different ownership structures viz., public sector banks (PSBs), private banks (PBs) and foreign banks (FBs), of banks in India. The panel data for all the banks from 2005 to 2014 is collected from the official website of Reserve Bank of India (RBI), the Central Bank of the country. The econometric technique of Fixed Effects model and Random Effects model is used for the purpose. The results reveal that Macro economic factors, like log of percapita income (LPCY) and Inflation (INFN), are significantly affecting NPLs in Public Sector Banks (PSBs). In case of private banks (PBs) LPCY is highly significant while bank specific variables like size and total loans to total loans of the banking sector (TLTLBS) are significant at 10% level. For FBs none of the variables were significant.
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Boora, Krishan, and Kavita Jangra. "Preparedness level of Indian public sector banks for implementation of Basel III." Managerial Finance 45, no. 2 (February 11, 2019): 172–89. http://dx.doi.org/10.1108/mf-10-2017-0416.
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PurposeThe purpose of this paper is to explore the preparation level of Indian public sector banks for the implementation of Basel III. It is mandatory for public sector banks in India to make adequate preparations to comply with the Basel III international regulations.Design/methodology/approachThis study uses a modified questionnaire (Ernst & Young, 2013; AL-Tamimiet al., 2016) to examine the preparedness level of Indian public sector banks for implementing Basel III. Seven hypotheses are developed and tested.FindingsThe results show that Indian public sector banks are positively inclined toward Basel III, and the awareness level of Indian banks’ managers is adequate concerning Basel III. The banks have required resources for the proper implementation of Basel III, which is a prerequisite for its implementation. Banks know about the expected benefits that can be attained from implementing Basel III appropriately and banks are also aware of the high cost attached with Basel III. The capital adequacy ratio of public sector banks is above 11 percent, showing the banks’ readiness for Basel III.Practical implicationsThe public sector banks need to concentrate on revising the existing policies to sharpen their risk management practices. Moreover, improving the level of education on Basel III is still required and the results also support the importance of advanced technology and trained human resources at all level as a basic requirement for the implementation of Basel III. It can be achieved by the support of government, Reserve Bank of India (RBI) and other concerned agencies. The enforcement of Basel III will also create various challenges for Indian public sector banks, in terms of declining profitability, increasing capital requirements and nonperforming assets. That is why the impact of Basel III norms on Indian public sector banks cannot be undervalued.Originality/valueThe findings would assist the Indian public sector banks to know about their preparedness level for Basel III and what are the necessary actions to encourage Basel III implementation process. The present study would be important for regulators and decision makers in banks, as the main purpose of this study is to increase their awareness of Basel III norms. The result would also help the regulators regarding the corrective measures that should be taken by RBI in order to motivate the banks for enforcing Basel III.
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Sathye, Milind. "Privatization, Performance, and Efficiency: A Study of Indian Banks." Vikalpa: The Journal for Decision Makers 30, no. 1 (January 2005): 7–16. http://dx.doi.org/10.1177/0256090920050102.
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Enhancing efficiency and performance of public sector banks (PSBs) is a key objective of economic reforms in many countries including India. It is believed that private ownership helps improve efficiency and performance. Accordingly, the Indian government started diluting its equity in PSBs from early 1990s in a phased manner. Has the partial privatization of Indian banks really helped improve their efficiency and performance? International evidence on impact of privatization is mixed. Though the issue is important in the Indian context, no study to the author's knowledge has addressed it so far. The present study, thus, fills an important gap. The data required for the study were obtained from Performance Highlights of Banks, a publication of the Indian Banks' Association. The author could readily obtain publications for five years — 1998-2002; his analysis is, thus, restricted to these five years. The financial performance of the banks was measured using the standard financial performance measures such as return on assets. The efficiency of banks was measured using accounting ratios, e.g., deposits per employee. Two main approaches are generally used to evaluate the impact of privatization on firm performance: ‘Synchronic’ approach in which the performance of state-owned firms is compared with the firms that were privatized or with the firms that were already in private ownership. ‘Historical’ approach, in which ex-ante and ex-post privatization performance of the same enterprise is compared. Given that the data are available for only five years, the author uses the synchronic approach. Since the dataset is not large enough to allow the use of more robust multivariate statistical procedures, he confines himself to the use of the difference of means test. This study reveals the following: Financial performance of partially privatized banks (measured by return on assets) and their efficiency (measured by three different ratios) were significantly higher than that of the fully public banks. In the matter of quality of advances (measured by the ratio of non-performing assets to net advances), significant difference was not found in these two groups. Of course, there is no quick fix for this problem. Partially privatized banks also seem to be catching up fast with fully private banks as no significant difference was found in financial performance and efficiency between them. On comparing the strategies of privatization in India with the other countries, India was found to adopt the strategy of initial public offerings like Poland. This strategy failed in Poland but seems to have succeeded in India. Gradual privatization and well-developed financial markets seem to have contributed to Indian success.
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Patel, Dr Jaimin. "Study of Profitability Ratios of Nationalized Banks and Private Banks Operating in India." International Journal of Trend in Scientific Research and Development Volume-2, Issue-6 (October 31, 2018): 197–200. http://dx.doi.org/10.31142/ijtsrd18425.
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Mehta, Laveena, and Meenakshi Malhotra. "Empirical Analysis of Non Performing Assets Related to Private Banks of India." International Journal of Management Excellence 3, no. 1 (April 30, 2014): 386–91. http://dx.doi.org/10.17722/ijme.v3i1.128.
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In present scenario, Indian banks are struggling with challenges related with NPA’s. Some years before these banks were in Flourishing heights.but health of these banks deteriorated because of non performing assets. Many Indian banks have been controlled their non performing assets up to a level, but some banks still have been failed to control their NPA’s status, as a result, NPA hitting the profitability of these banks. Through this research paper we have examined the trend of NPA’s over the past 8 years and the relationship between NPA’s and profitability of private sector banks. According to the Reserve bank of India priority sector lending must be promoted so that those sectors who can’t approach the organized market for lending purposes and can’t afford the higher commercial rate of interest, can get loans in an easy way. RBI specified the percentage of loans to priority sectors out of the total money lent by the banks. This paper examines the NPA in Priority Sector Lending and the impact of priority sector lending on the gross NPA of private sector banks. The result showed the significant impact of priority sector lending on gross NPA of private Sector banks. This study revolves between the period 2005 and 2012.
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Sharifi, Sirus, Arunima Haldar, and S. V. D. Nageswara Rao. "The relationship between credit risk management and non-performing assets of commercial banks in India." Managerial Finance 45, no. 3 (March 11, 2019): 399–412. http://dx.doi.org/10.1108/mf-06-2018-0259.
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Purpose The purpose of this paper is to examine the impact of credit risk components on the performance of credit risk management and the growth in non-performing assets (NPAs) of commercial banks in India. Design/methodology/approach The data are obtained from primary and secondary sources. The primary data are collected by administering questionnaire among risk managers of Indian banks. The secondary data on NPAs of Indian banks are from annual reports and Prowess database compiled by the Centre for Monitoring Indian Economy. Multiple linear regression is used to estimate the models for the study. Findings The results suggest that the identification of credit risk significantly affects the credit risk performance. The results are robust as credit risk identification is negatively related to annual growth in NPAs or loans. There is evidence in support of a priori expectation of better credit risk performance of private banks compared to that of government banks. Practical implications The study has implications for Indian banks suffering from a high level of losses due to bad loans. In addition, it will have implications for the implementation of new Basel Accord norms (Basel III) by the Reserve Bank of India. Social implications The high and rising level of NPAs will have adverse consequences for credit flow in the economy in the absence of appropriate intervention by government and central bank in the form of changes in institutional and regulatory infrastructure. The problems in banking and financial services sector will lead to lower industrial and aggregate economic growth, and lower (or negative) growth in employment. Originality/value There is little evidence on credit risk management practices of Indian banks, and its relationship with credit risk performance and NPA growth. The need for an effective risk management system to manage credit risk assumes importance and urgency in the context of high and rising NPAs of Indian banks, and the consequences for the Indian economy.
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Umar, Muhammad, Gang Sun, and Muhammad Ansar Majeed. "Bank capital and liquidity creation: evidence of relation from India." Journal of Asia Business Studies 11, no. 2 (May 2, 2017): 152–66. http://dx.doi.org/10.1108/jabs-12-2015-0208.
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Purpose This study analyzes the impact of changes in bank capital on liquidity creation. More specifically, it tests “financial fragility – crowding out” and “risk absorption” hypotheses for Indian banks. Design/methodology/approach It uses the data of 136 listed and unlisted banks, ranging from the year 2000 to 2014. The analysis is based on panel data techniques. Findings There is negative relationship between narrow measure of bank liquidity creation and capital. Therefore, in the case of India, “financial fragility – crowding out” hypothesis holds for “cat nonfat” measure of liquidity creation. However, there is no relationship between “cat fat” measure of liquidity creation and capital, except for listed banks, and the banks in the pre-crisis period. In these two cases, “risk absorption” hypothesis holds. Furthermore, none of the hypotheses holds in the post-crisis period. Practical implications The higher capital requirements posed by the Basel III will result in lower on-balance-sheet liquidity creation, which may result in lower profitability for the banks. However, increase in capital does not affect off-balance-sheet liquidity creation, rather enhances it in case of listed banks. So, the managers may use risky off-balance-sheet liquidity creation to improve profitability. Therefore, the regulators must be vigilant to the off-balance-sheet activities of banks to avoid banking turmoil. Originality/value To the best of authors’ knowledge, this is the first study to explore which hypothesis regarding the relationship between bank capital and liquidity creation holds for Indian banks. It contributes to the existing literature by providing the empirical evidence that “financial fragility – crowding out” hypothesis holds for on-balance-sheet liquidity creation and “risk absorption” hypothesis holds for listed banks. It also points to the new direction that neither of the hypotheses holds in the post-crisis period in India.
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Shastri, Payal. "A COMPARATIVE STUDY OF CSR SPENDING & CSR REPORTING PRACTICES OF SELECTED BANKS IN INDIA." Sachetas 1, no. 4 (November 13, 2022): 48–55. http://dx.doi.org/10.55955/140005.
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This paper seeks to identify the Corporate Social Responsibility (CSR) practices adopted by the selected dominant Indian Public Banks, Indian Private Banks & Foreign Banks Operating in India. One on hand of the research analysis, is the Banking Sector – a dominant service industry in India, that contributes considerably towards India’s growth by maintaining the equilibrium in the financial ecosystem, and on the other side of the research, is the contemporary concept of CSR, where the society, government and corporates have joint interest and leverage. And therefore, it will be quite interesting to review the CSR practices adopted by Banking Sector. In the present study, the researcher analyzes & compares the CSR practices adopted by the sample Banks with respect to CSR Spending and CSR Reporting patterns. Further, it is endeavored to determine the most preferred and most neglected CSR areas by the sample banks. And thereby some suggestions are presented to improve the CSR practices to better serve the society and fulfill the CSR legal obligations as per the Companies Act, 2013. The results of the study confirm that Indian Private Banks are the most compliant towards CSR spending & Reporting and the most preferred CSR areas are regular CSR areas of: Healthcare, Education, Environmental Sustainability etc., and most neglected CSR areas are also continuously same: Contributions to Technology Incubators, Slum Development Projects etc.
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ANUPRIYA. "The Impact of Data Mining Techniques on the Indian Banking System." Turkish Journal of Computer and Mathematics Education 09, no. 01 (2018): 497–508. http://dx.doi.org/10.36893/tercomat.2018.v09i01.497-508.
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A definite transition away from the current post-industrial civilization towards the "Knowledge - based society" is being brought about by the influence of the "information Revolution" that is shaking the sphere. The banking and finance sector which consists of banks, financial firms, and other providers of financial services, is increasingly adopting new ICT developments (ICT). ICT adoption by banks has clearly benefited the banks in the form of improved customer service, reduced transaction expenses, a larger variety of delivery options and goods, etc. All banks are using fintech (Fin Tech) more and more. India particularly has experienced a period of demonetization (DeMo) as of November 8, 2016. Banks in India support contactless payments and digital banking in this contemporary DeMo age, and they are increasingly implementing fintech. There is intense competition in the financial system between individual banks and bank groups as a result of the digital take on elements place in the Indian economy as a whole and the banking industry in particular. The Next Generation of Private Banking Institutions (NGPSBs) is quickly eroding the market share held by Public Sector Banks (PSBs) (NGPBs). Using ICTbased solutions can help banks stay competitive in an environment where industry competition is on the rise. In the ongoing DeMo era in India, this study examines the implications of information mining technologies for improved competition, especially in conventional banking institutions.
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Bönte, Werner, Ute Filipiak, and Sandro Lombardo. "Get in with a Foreigner: Consumer Trust in Domestic and Foreign Banks." International Journal of Economics and Finance 9, no. 6 (May 5, 2017): 38. http://dx.doi.org/10.5539/ijef.v9n6p38.
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Prior research suggests that trust plays an important role in an individual’s decision to participate in financial markets. This paper focuses on potential customers in retail banking markets and empirically investigates their trust in foreign banks and domestic banks. We argue that differences in customer trust can be related to three factors, namely bank-specific characteristics, individual characteristics of the potential customer and characteristics of the institutional environment. Using a large survey on the savings patterns of Indian households, we find that potential retail banking customers in India are less likely to trust foreign banks with their money than private Indian banks. However, our results also suggest that highly educated Indians using information sources such as the Internet, radio or newspaper, tend to have more confidence in foreign banks than in private Indian banks. Moreover, in regions with either more foreign bank branches or higher corruption levels the likelihood of consumers trusting Indian private banks more than foreign banks is lower than in other regions.
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Pandey, Smita. "A STUDY ON FINANCIAL SCALABILITY CHECK ON INDIAN SMALL DEVELOPMENT BANKS." International Journal of Management, Public Policy and Research 2, no. 4 (October 17, 2023): 45–50. http://dx.doi.org/10.55829/ijmpr.v2i4.188.
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This study examines the financial scalability of small development banks in India by conducting a thorough analysis of their financial statements, risk management policies, and growth strategies. The research aims to evaluate the banks' ability to sustain growth while maintaining their financial stability and minimizing risks. The study also investigates the role of regulatory bodies in ensuring financial scalability in small development banks. The findings suggest that while small development banks in India have demonstrated significant growth potential, there is room for improvement in their risk management practices and diversification of funding sources. Small Finance Banks are recent banking initiative of Reserve Bank of India towards promotion of financial inclusion in India. Ten Small Finance banks operate actively across India and most of them got scheduled bank status. Small Finance Banks have a lot of challenges in terms of branch establishment, lending, deposit mobilization and operating expenses. The Small Finance banks need to survive and sustain despite all the challenges mentioned and to meet the objective of existence – Financial Inclusion. This article studies about Small Finance banks and small development banks.
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Jain, Aastha. "Impact of BASEL III on India." Journal of Business Management and Information Systems 4, no. 1 (June 30, 2017): 23–28. http://dx.doi.org/10.48001/jbmis.2017.0401003.
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The Basel Committee on Banking Supervision (BCBS) set the first of capital accords in 1988, called the Basel I. Due to the dynamic changes in the world of financial system Basel I gave way to Basel II. Basel II plagued with the problem of pro-cyclicality paved the way for Basel III. India adopted Basel III norms in 2012. The present paper studies the impact of Basel III on India. In the short run, it will lead to a reduction in profitability of banks, curtailed credit to the economy and it is accused of being a needless burden on the Indian banks. But in the longer run, it will keep India integrated with the rest of the world. It will make the Indian financial system stronger, more stable and sound. It boils down to a trade-off between short-term costs and long run growth benefits.
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Uppal, R. K. "Banking Sector Reforms: Policy Implications and Fresh Outlook." Information Management and Business Review 2, no. 2 (February 15, 2011): 55–64. http://dx.doi.org/10.22610/imbr.v2i2.883.
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Various reform measures introduced in India have indeed strengthened the Indian banking system in preparation for the fresh global challenges ahead. The present paper reviews the banking sector reforms policy, crucial issues and agenda for the future. On the basis of certain parameters, like productivity, profitability and NPAs’ management, the paper concludes that foreign banks and new private sector banks are much better in performance as compared to our nationalized banks in the post-banking sector reforms period. The paper ends with the future agenda for the Indian banking industry, particularly for public sector banks to make them efficient and strong, to compete with the global banks.
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Mohanty, Seba, and Jitendra Mahakud. "Causal Nexus Between Liquidity Creation and Bank Capital Ratio: Evidence from India." Margin: The Journal of Applied Economic Research 15, no. 2 (May 2021): 205–37. http://dx.doi.org/10.1177/0973801021990399.
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This study investigates the interrelationship between bank capital and liquidity creation in the Indian banking sector. The sample considers 68 commercial banks (public, private and foreign banks) operating in India during the period from 1996–1997 to 2013–2014. We employ the generalised method of moments technique in a Granger causality framework and find a bidirectional relationship between bank capital and liquidity creation for the entire sample. Our results support the financial fragility–crowding-out hypothesis, which suggests that Indian banks follow a fragile financial structure to maximise liquidity creation and increase their capital ratio by crowding out deposits to limit liquidity creation. Our results also support the liquidity substitution hypothesis, which suggests that stable liabilities can be substituted for bank capital, while facing more risk. We find similar results with the whole sample regardless of ownership, size, capitalisation and periods. These findings have implications for bank managers and policymakers on formulating appropriate policy for capital and liquidity creation of commercial banks in India. JEL Codes: G20, G21, G33
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Sivramkrishna, Sashi, Soyra Gune, Kasturi Kandalam, and Advait Moharir. "Shadow Banking in India: Nature, Trends, Concerns and Policy Interventions." Review of Economic and Business Studies 12, no. 2 (December 1, 2019): 29–46. http://dx.doi.org/10.1515/rebs-2019-0090.
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AbstractWhile the origin of shadow banks may be traced to the 1970s, developing countries have witnessed a massive growth of shadow banks in more recent decades. India too has seen a similar growth in shadow banks; however, the recent 2018 collapse of IL&FS Group, a major shadow bank, disrupted the credit cycle, stalled investment and even affected overall GDP growth. With experts warning that shadow banks are susceptible to systemic risks and crisis, it becomes imperative to understand the shadow banking system better. In this paper, we use exploratory data analysis – both quantitative and qualitative – to draw attention to the need for definitional clarity in the concept of shadow banks and how they operate. Trends in Indian shadow banking are discussed using data drawn from secondary sources. Systemic risks in India’s shadow banking sector are identified and policy interventions are discussed. The study is imperative for highlighting the importance of shadow banking in India, its growth and the evolving policy interventions regulating this important component of the financial system.