scholarly journals IMPACT OF BANK SPECIFIC DETERMINANTS ON NET INTEREST MARGIN: EMPIRICAL EVIDENCE FROM PUBLIC AND PRIVATE SECTOR COMMERCIAL BANKS IN INDIA

2016 ◽  
Vol 02 (04) ◽  
pp. 389-393
Author(s):  
Arun Prakash P. ◽  
◽  
Mohamed Sindhasha A.M. ◽  
Keyword(s):  
Private Sector ◽  
Empirical Evidence ◽  
Commercial Banks ◽  
Public And Private ◽  
Net Interest Margin ◽  
Public And Private Sector ◽  
Interest Margin

Impact Assessment Study of NPAs and Rate of Recovery: Are Private Sector Banks in India Better off?

2021 ◽  
pp. 097215092098030
Author(s):  
Richa Verma Bajaj ◽  
Gargi Sanati ◽  
Chetan Lodha
Keyword(s):  
Private Sector ◽  
Negative Relationship ◽  
Dynamic Panel ◽  
Public And Private ◽  
Basel Committee ◽  
Assessment Study ◽  
Gdp Growth Rate ◽  
Net Interest Margin ◽  
Rate Of Recovery ◽  
Public And Private Sector

Our study significantly contributes in understanding a comparative framework and the interactions of idiosyncratic and systematic factors for determining non-performing assets (NPA) and rate of recovery for banks in India, as put forward by Basel committee. Although determinants of NPA is very well debated issue, the comparison of public and private sector banks in terms of their assets quality i.e. NPAs and rate of recovery and their determinants like collateral, operational inefficiency, GDP growth rate etc. are the added contribition of this study. We have employed Arrelano–Bond dynamic panel method on 35 banks in India for the period 1998–1999 to 2017–2018 for determinants of NPAs, while determinants of rate of recovery are studied for the period 2003–2004 to 2017–2018. Our findings show that the priority sector loan has significant differences in determining NPA across banks despite them having sufficient collateral. The negative relationship between collateral and recovery, especially for private sector banks, signifies low recovery for illliquid collateral. This study may recommend that a bank with high net interest margin (NIM), high proportion of secured and liquid collateral, and sufficient mix of long- and short-duration loans in line with bank’s asset liability policy can manage their portfolio well.

Factors Influencing the Performance of Commercial Banks: A Dynamic Panel Study on India

2021 ◽  
pp. 231971452110215
Author(s):  
Sreemanta Sarkar ◽  
Debdas Rakshit
Keyword(s):  
Commercial Banks ◽  
Panel Study ◽  
Generalized Method Of Moments ◽  
Control Variables ◽  
Public And Private ◽  
Macroeconomic Factors ◽  
Explanatory Variables ◽  
Net Interest Margin ◽  
Public And Private Sector ◽  
The Impact

The article investigates the determinants of commercial banks’ performance in India over the period from 2000 to 2017 with special reference to the macroeconomic factors. Considering return on assets (ROA), return on equity (ROE) and net interest margin (NIM) as the measure of performance, we have chosen a panel of public and private sector commercial banks of our country. Taking some macro variables such as GDP, inflation and lending interest rate as the prime explanatory variables along with some bank-specific and macroeconomic control variables, first difference generalized method of moments (GMM) method has been applied to observe the impact of these macroeconomic factors on the performance of commercial banks. Results indicate that external variables significantly affect commercial banks’ performance and these findings remain unaltered with the sequential inclusion of all control variables. This work has immense importance to the bankers, planners and policymakers in shaping appropriate policy decisions for the commercial banks.

A Study on Efficieny Indicators of Public and Private Sector Commercial Banks in India

2012 ◽  
Vol 3 (1) ◽  
pp. 25-30
Author(s):  
N.Seshadri N.Seshadri ◽  
◽  
Dr. D. Pradeep Kumar Dr. D. Pradeep Kumar ◽  
Dr.T. Narayana Reddy
Keyword(s):  
Private Sector ◽  
Commercial Banks ◽  
Public And Private ◽  
Public And Private Sector
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