Download or read book Modeling the NPA of a Large Indian Public Sector Bank as a Function of Total Assets written by Rajveer Rawlin and published by GRIN Verlag. This book was released on 2011-12 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Scientific Study from the year 2011 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1, Dayananda Sagar College of Engineering (Department of Management Studies), course: Non Performing Assets, Banking, language: English, abstract: Non-performing assets (NPA) are the loans given by a bank or a financial institution where in the borrower defaults or delays interest and / principal payment. The management of NPAs therefore, is a very important part of credit management of banks and financial institutions in the Country. Currently NPA estimates in India are predominantly obtained from figures published by the Reserve Bank of India (RBI). However it would be helpful for banks and financial institutions to have an estimate of the NPA as soon as loan amounts are disbursed. This study attempted to develop a predictive model for the NPA% at both the gross and net level from the total assets of one of India's largest public banks. A strong correlation was observed between gross and net NPA% and the total assets suggesting that estimates of gross and net NPA can be made from total assets. Linear and non linear models were fit to predict the NPA% from the total assets. A non linear model linking both Gross and net NPA to total assets provided the best curve fit and the least deviation from actual values. Thus by simply looking at the banks total assets an overall picture of the banks NPA level can be ascertained.

Download or read book Managing Non Performing Assets in Indian Public Sector Banks written by Sk Mujibar Rahaman and published by Exceller Books. This book was released on 2022-09-30 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book provides a comprehensive coverage of a burning issue faced by the banking industry in India, namely, the problem of Non-Performing Assets (NPAs). The book elucidates the theoretical exposition of NPAs in the first instance. It also demystifies the trends in movement of NPAs and thereby expounds efficiency in NPA management by Public Sector Banks, PSBs, in India. Recognising the inevitable and festering nature of the problem, the author has come out, inter alia, with a data-driven approach to measure financial performance and thereby assessed impact of the problem on different performance areas of banks. The book also investigates the major factors causing the problem of NPAs of the Indian PSBs. Finally, the author provides certain recommendations for the banks and the government that can help manage NPAs and strengthen the banking industry in the country.

Download or read book Management of Non performing Advances written by T. V. Gopalakrishnan and published by Northern Book Centre. This book was released on 2004 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book deals with the problem of Non-Performing Advances (NPAs) in public sector banks and its impact on the banks' books, banking and financial system of the economy. Recognizing the inevitable and festering nature of the problem, the author has come out, inter alia, with a statistical model as an innovative, simple and practical solution to contain NPA formation to ensure a strong balance sheet for banks and improved image of the borrowers. The author claims that the solution will prove to be a win-win situation for all stakeholders of banks including the economy, and its constituents Government, shareholders, depositors, borrowers, employees and others. Salient Features Changes brought about in banks under Banking Sector Reforms. • Emergence of NPAs in banks. • Problem of NPAs: Its causes and effects. • Performance of Public sector banks on management of NPAs. • Impact of NPAs on the economy, banks’ balance sheets and profit and loss accounts. • Suggestions to contain NPAs from the angles of banks, borrowers, Government, Regulator and others. • A Statistical Model developed to contain formation of NPAs, strengthen banks' balance sheets and develop an emotional rapport between banks and borrowers.

Download or read book Determinants of Public Sector Bank s Profitability in India written by Gurmeet Singh and published by . This book was released on 2016 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economic development of country depends on the effective banking system. In recent years, there have been considerable pressures on the profitability of banks. The study investigates the long run equilibrium relationship between the return on assets (ROA) and nine variables over the period 2005 to 2014. Johansen's co-integration test and vector error correction model have been applied to explore the long-run equilibrium relationship. The analysis reveals that the returns on assets of the Indian public sector banks are positively co-integrated with all the nine variables under the study and hence, a long-run equilibrium relationship exists between them. The results of VECM revels that secured advances to total advances, burden to total assets, burden to interest income, operating profits to total assets, non-interest income to total assets and profit per employee causes return on asset in long run and short run. While, non performing assets, deposits to total liabilities and net interest margins causes return on assets in short run only. The findings from Granger causality based on the VECM indicate bidirectional causality exists between all the variables tested and return on assets except non-performing assets. Non-performing assets granger causes return on assets but not the other way round.

Download or read book Non performing Assets in Commercial Banks written by Dr. Vibha Jain and published by . This book was released on 2007 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contents Include : Introduction; Npa Concept And Prudential Norms; Trends Of Non-Performing Assets; Prevention Of Non-Performing Assets; Management Of Npas; Npa Management In Perspective; Annexure.

Download or read book Application of Multi Criteria Decision Making Models in Regulatory Evaluation of Commercial Banks in India and Its Consistency with Public Perception written by Tamal Chaudhuri and published by . This book was released on 2015 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper, first, examines the performance of a sample set of public sector banks (nationalized banks and State Bank of India) and a sample set of private sector banks in terms of certain regulatory variables. It uses aggregation techniques like TOPSIS, VIKOR and ELECTRE - III to rank their performance. This exercise is done over a period of time to see whether the ranking of banks, both in the private sector and the public sector, has undergone any change. These aggregation techniques provide an alternative method to that of CAMELS used by Reserve Bank of India. Second, the paper delves into market perception of these two sets of banks and ranks them in terms of the aggregation techniques. The paper then combines the above two approaches to check whether the market at large understands the regulatory framework that the banks need to follow. Variables like RISK (Risk Weighted Assets/Total Assets), CAR (Actual Capital Adequacy Ratio), CRRISK (Provisions/Total Advances), VULNER (Ratio of Deposits to Risk Weighted Assets), CLSTATE (Ratio of Government Security Holdings to Total Assets), ROA (Returns on Assets), Net Interest Margin and NPA percentage are selected to represent regulatory variables. Price/Earnings (P/E) Ratio, Price/Book Value per Share (P/BVPS), Size as measured by size of deposits, Dividend Payout Ratio, Dividend Yield and ROE are chosen to represent public perception banks.

Download or read book Breaking the Chains written by Elio E and published by Elio Endless Publishers. This book was released on 2023-07 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Introducing "Breaking the Chains: Comparative Study of NPA Challenges in Indian Public Sector Banks" As a book distributor, I understand the significance of every page that graces my hands. And in this moment, I assure you, without further ado, that this is a journey worth undertaking. "Breaking the Chains" unveils a captivating exploration-a comparative study that unravels the challenges of non-performing assets (NPA) in Indian public sector banks. The world of banking, where financial currents ebb and flow, holds the key to a nation's economic and social development. It is within these sacred halls that financial assistance breathes life into sectors like agriculture, trade, industry, education, and health. In the vibrant tapestry of India, the banking sector assumes a vital role, weaving itself intricately into the implementation of five-year plans, showcasing its unwavering importance. As the echoes of history reverberate through the pages, we trace the origin and growth of banking in India-a tale as old as time itself. From the depths of Vedic times, where farming, trade, harvesting, and money lending formed the bedrock of society, to the emergence of private banks, their structures initially unorganized. However, wars and recessions cast their shadow, leading to the closure of many private banks, leaving a lasting impact on the course of the Indian banking sector. Within these compelling narratives, we witness the pivotal role that Indian public sector banks play in fostering the economic and social development of the nation. In the Ernest Hemingway style, each word carries weight, each sentence strikes a chord. The author's narrative expertly weaves together the intricate threads of comparative analysis, shedding light on the challenges posed by non-performing assets. With each turn of the page, "Breaking the Chains" invites readers to delve deep into the complex world of banking, where the resilience of institutions intersects with the aspirations of a nation. It is a journey that uncovers the struggles and triumphs, the complexities and possibilities, that define the path toward a robust and thriving financial system. Join us on this enlightening expedition, where knowledge illuminates and understanding paves the way for progress. "Breaking the Chains" serves as a reminder that even amidst challenges, the resilience of the Indian banking sector remains steadfast-an enduring force in shaping the nation's destiny. Let these pages be a testament to the power of informed decision-making and a catalyst for the continued growth and prosperity of India's financial landscape.

Download or read book Management of Non Performing Assets in the Indian Public Sector Banks written by Goutam Bhowmik and published by LAP Lambert Academic Publishing. This book was released on 2010-11 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt: The occurrence of NPAs has been the single most vexing problem faced by the Indian Public Sector Banks (PSBs). In view of several adverse effects of NPAs both on banking and overall economy, the management of NPAs has become a crucial issue.Efforts of RBI & Govt.of India, however, seems to be inadequate. The present work, therefore, examined a number of relevant issues w.r.t management of NPAs in the PSBs with special reference to largest commercial bank, State Bank of India (SBI). Apart from discussing the means and strategies of managing NPAs in PSBs & SBI, the work provided a theoretical framework relating to NPAs and history of PSBs.It also covered areas like, NPA management framework in pre-reform period, NPAs in the priority sector and non priority sector lending, accounting and disclosure of NPAs, reduction of NPAs in Private Sector Banks and PSBs, etc. The work should help to provide an in-depth knowledge about the meaning, nature, causes, problems, progress and implication of one of the vexing problems of banking sector. The work would be useful to the academicians and professionals or anyone who have keen interest in the field of accounting, finance, banking and management

Download or read book Macroeconomic Factors Affecting the NPAs in the Indian Banking System written by Sabat Kumar Digal and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study attempts to analyze the current problem that Indian banking system is facing -- Non-Performing Assets (NPAs). It empirically tries to examine both the macroeconomic and microeconomic (bank-specific) factors responsible for the rising NPA levels in the Indian banking sector. Banks have been considered sector-wise, namely, public sector banks, private sector banks and foreign banks, so as to distinguish the performance of each category of banks. However, for empirical analysis, historical annual data for 45 scheduled commercial banks operating in the public and private sector (the total assets of these banks constitute about 94.7% of total advances of the banking sector as on end March 2013) between 2005 and 2013 have been analyzed using panel data model. The empirical results show that at the macroeconomic level, the economic slowdown significantly and adversely impacts the NPA levels of the banks, which is evident from large and statistically significant coefficients of the growth in Gross Domestic Product (GDP) of the country. The other macroeconomic factors which explain the recent trends in the NPA levels are the trade balance with other countries, high government deficit and the level of inflation. In case of bank-specific factors, restructuring activities, operating efficiency and credit growth are found to control the NPA levels significantly. The sectorwise analysis of banks reveals that the microeconomic parameters have less impact on the NPA levels of the banks.

Download or read book Indian Financial Sector written by Rakesh Mohan and published by International Monetary Fund. This book was released on 2017-01-20 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper traces the story of Indian financial sector over the period 1950–2015. In identifying the trends and turns of Indian financial sector, the paper adopts a three period classification viz., (a) the 1950s and 1960s, which exhibited some elements of instability associated with laissez faire but underdeveloped banking; (b) the 1970s and 1980s that experienced the process of financial development across the country under government auspices, accompanied by a degree of financial repression; and (c) the period since the 1990s till date, that has been characterized by gradual and calibrated financial deepening and liberalization. Focusing more the third period, the paper argues that as a consequence of successive reforms over the past 25 years, there has been significant progress in making interest and exchange rates largely market determined, though the exchange rate regime remains one of managed float, and some interest rates remain administered. Considerable competition has been introduced in the banking sector through new private sector banks, but public sector banks continue have a dominant share in the market. Contractual savings systems have been improved, but pension funds in India are still in their infancy. Similarly, despite the introduction of new private sector insurance companies coverage of insurance can expand much further, which would also provide greater depth to the financial markets. The extent of development along all the segments of the financial market has not been uniform. While the equity market is quite developed, activities in the private debt market are predominantly confined to private placement form and continue to be limited to the bluechip companies. Going forward, the future areas for development in the Indian financial sector would include further reduction of public ownership in banks and insurance companies, expansion of the contractual savings system through more rapid expansion of the insurance and pension systems, greater spread of mutual funds, and development of institutional investors. It is only then that both the equity and debt markets will display greater breadth as well as depth, along with greater domestic liquidity. At the same time, while reforming the financial sector, the Indian authorities had to constantly keep the issues of equity and efficiency in mind.

Download or read book Ownership Structure Size and Banking System Fragility in India written by Navneet Kaur and published by . This book was released on 2019 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Considering the fact that Reserve Bank of India (RBI) has put eleven Public sector Banks under Prompt Corrective Action (PCA) and planning to put three more, where Public sector banks constitute 68.9% of total Asset of Indian Banking Industry based on 2017 figures, this raises a genuine concern for Fragility of Indian Banking sector as whole. This study proposes to apply Cox proportional hazards model function to estimate the survival rate of Indian Banks. Ownership and size plays an important role on functioning of banks, so this study estimates if the probability of survival of Public sector Banks is more than Private sector banks and second, if large banks have more chances of survival than smaller Banks. This study found that, on the basis of ownership there is no statistical significant difference in the failure risk of Public sector banks and Private sector Banks. However, Smaller Banks are at the higher risk of failure than Large Banks. This study is based on Public and Private sector banks operating in India for the period 2000-2017 and findings of this study can be used to create an early warning systems for smaller Banks in India.

Download or read book Evaluating the Financial Performance of Select Indian Banks Using Eagles Model written by Santhoshi Kumari and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Banking sector plays an important role in the economic development of a country. In India, Eagles model is capable of measuring and comparing banks' performance in a more determinate, objective and consistent manner. There is no subjectivity involved in Eagles model, and the banks are judged purely on the output ratios and ranked based on these parameters. The present study uses 10 years' data of selected 10 public and private sector banks. The results reveal that Yes Bank is in top position in terms of Return on Assets (ROA), gross NPA, and Provision Coverage Ratio (PCR). This indicates that Yes Bank has more earning capacity as compared to the remaining selected banks. Kotak Mahindra Bank is also performing efficiently in terms of investment-to-deposit and Capital Adequacy Ratio (CAR), which indicates that private sector banks are performing well as compared to public sector banks. Among public sector banks, State Bank of India is performing efficiently in loans and deposits component. The study proves that there is a significant difference in the performance of selected public and private sector banks.

Download or read book Futue of FinTech Innovative Business Model for Financial Inclusion written by Dr. Sunita Shukla and published by Book Bazooka Publication. This book was released on 2019-11-14 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: This compendium is a collection of papers which were presented in National Seminar on the theme “FinTech: Innovative Business Model for Financial Inclusion.” Organized by Department of MBA, I.T.S Engineering College, Greater Noida on November 15th, 2019. Through this compendium we aim to collate the ideas generated in the Seminar and bring them to the readers. FinTech is one of the promising industries all over the world and at the same time disruption to financial services Industry. The high usage of smart phones and technology based products has created the demand for accessing of financial services through internet. Further, this growth is expected to be USD 305.7 bn by 2023. The services provided by these companies are not only confined to payments, it cater much broader range of services like lending, capital market and wealth management. The collection of papers in this compendium focuses on various dimensions on the contemporary and emerging trends of banking and financial services in a digital world and major issues and challenges for the future market players in Financial Services Industry.

Download or read book The 8th Annual Conference of the Economic Forum of Entrepreneurship International Business written by Ghada Gomaa A. Mohamed and published by Dr. Ghada Mohamed. This book was released on 2022-02-01 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 8th Annual Conference of the Economic Forum of Entrepreneurship & International Business Organized by Dr. Ghada Gomaa A. Mohamed Conference venue: LMH, University of Oxford, Oxford, United Kingdom Conference proceeding: Library & Archive Canada Conference date: February 1st, 2020 Editors: Dr. Ghada Mohamed Dr. Morrison Handley-Schachler Dr. Daniel May Dr. Thomas Henschel https://epe.lac-bac.gc.ca/100/201/300/annual_conference_economic/v08.pdf

Download or read book Private Participation in the Indian Power Sector written by Mohua Mukherjee and published by World Bank Publications. This book was released on 2014-10-21 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt: Massive private investment that complements public investment is needed to close the demand-supply gap and make reliable power available to all Indians. Government efforts have sought to attract private sector funding and management efficiency throughout the electricity value chain, adapting its strategy over time.

Download or read book A Comparison of the Effects of Key Determinants on Share Prices of India s Largest Public and Private Sector Banks written by Rajveer Rawlin and published by . This book was released on 2016 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: The banking sector in India has come under the scanner following some key changes in monetary policy. The recent quarterly reports of several banks have clearly showed a rise in non-performing assets (NPAs) and deteriorating asset quality. With the Reserve Bank of India (RBI) lowering interest rates following slower economic growth, bank share prices have risen sharply. The share price of banks is impacted by both internal and external factors. This paper is an attempt to compare the key drivers of the stock prices of India's largest public and private sector banks. Bank specific metrics were important drivers of profits at both banks. Risk factors such as gross and net NPAs and capital adequacy ratio were also important for both banks, suggesting that bank share price appreciation could come at the expense of asset quality. Productivity measures were key drivers of the stock price of India's largest public sector bank SBI, but had no effect on the share price of India's largest private sector bank, HDFC bank. Asset usage efficiency measures were key determinants of the share price of HDFC bank but not of SBI. The single most important determinant of the share price of SBI proved to be business per employee, a productivity measure while total assets and its key component advances along with deposits were key drivers of profits at HDFC bank. Managers at both banks and their shareholders thus can look at these drivers to develop a broad understanding of what influences stock prices of these two benchmark Indian banks.

Download or read book Management of Non Performing Assets A Comprehensive Model for Assessment written by Fareed Ahmed and published by . This book was released on 2017 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a bank led economy, the concern for effective management of non-performing assets (NPAs) in the Indian banking sector is relevant. The most commonly used indicators for assessing the performance of banks, have been Gross NPA (GNPA) and Net NPA (NNPA) ratios. But the techniques adopted by banks for NPA reduction vary widely and play a significant role in the improvement of quality of NPA management of banks. After an in-depth analysis of various factors affecting NPA management in banks, this paper makes an attempt to compare the performance of Indian banks with respect to various aspects of NPA management, by developing an index which will enable one to have a clear understanding of the bank's performance vis-à-vis its peers. By constructing this index, the study revealed that, though the economic downturn was faced by all banks, deterioration in asset quality and poor NPA management was not reflected across all bank groups and PSBs share a disproportionate and increasing burden in case of NPAs among the bank groups and divergence among banks in the same group.