Examining and analysing the determinants of non-performing assets in public and private sector banks in India Online publication date: Thu, 01-Jun-2023
by Swati Singh; Manpreet Arora
International Journal of Economics and Business Research (IJEBR), Vol. 25, No. 4, 2023
Abstract: There is no doubt that the Indian financial sector is growing at an efficient rate but at the same time the growth rate of non-performing assets (NPAs) of the banks are also increasing. There is a high variation of growth of these NPAs among different groups of banks. This paper examines the effect of various important variables on net NPAs. Panel data regression is used for analysing the data. For the analysis purpose, dataset of 20 public sector banks and 18 private sector banks from year 2009-2019 is considered. Data is collected from various reports of RBI. GMM model is applied to solve the problem of endogeneity. Results and analysis showed that capital adequacy tier I, net interest margin, burden ratio and bank size have negative and significant effect on NPA, whereas intermediation cost showed positive and significant effect on NPA.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com