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This paper investigates the presence and significance of bank lending channel of the monetary policy transmission in India and Pakistan using the Structural Vector Auto Regression (SVAR) approach. The results of econometric analysis support the presence of a significant bank lending channel in these countries. Changes in the monetary policy instruments affect the credit variable (private sector claims) which in turn transmits the shocks to the real side of the economy, i.e. output and prices. The output returns back to initial level in long run, while the effect of monetary policy changes on prices are persistent. I also find that compared to the bank lending in other developing countries the channel in these countries is different and more vital. Apart from interest rates, money also seems to play an important role in these economies and its shocks are significantly transmitted to the real macroeconomic activities through changes in the credit variable. [ABSTRACT FROM AUTHOR]

The increasing employment and dependence on technology has led to a hindrance in the development of the individual's skills. However, IT is only an aid to human efforts not a substitute thereof. IT has resulted in improvement in banks performance and it is a core competitive factor of bank transformation. The paper concludes that skilled and efficient labour is a crucial factor to manage the recent bank transformation. The present position of HRM in banks demands, appropriate human resource strategies, policies and practices to achieve organizational goals. The paper also studies the impact of downsizing (with the help of various statistical tools) on business efficiency, operational efficiency and labour cost. Downsizing of employees in the banking sector is significantly high but negatively correlated with the labour efficiency, operational efficiency and labour cost. On the basis of results, the paper suggests some policies and strategies to manage recent bank transformation through effective HRM. [ABSTRACT FROM AUTHOR]

This paper explores the impact of the financial infrastructure on the gross domestic product of India. It covers the pre and post period of reforms to test the impact of reforms on the GDP. The paper tries to find out the structural brakes in the growth of GDP that might have taken place due to the policy change occurred in 1991. For that, we introduced a dummy variable to track down the structural change that may have occurred after the reforms in shaping the size of the GDP. We used Organized Least Square Regression to observe the relationship between the explanatory variables and dependant variables. Our investigation reveals that commercial bank deposit and gross capital formation plays significant role in enhancing GDP in India. Another important finding the paper reveals is the policy initiatives of 1991 gave positive contribution in escalating the GDP of India. [ABSTRACT FROM AUTHOR]

Economic Value Added (EVA) has become a popular and powerful tool for managers to measure performance and for guiding investment decisions in banks. The main objective of this paper is to evaluate the effectiveness of EVA with ROCE, RONW, PBDIT and EPS as a predictor of maximization of shareholder's wealth of public sector banks in India. The results obtained from an analysis are carried out on the financial data of all public sector banks in India for the period of ten years. The multiple correlation and regression analysis have been used to analyze whether EVA has highly significant relation with Market Value Added or not as compared to other traditional performance measures. The results indicate that EVA and other traditional performance measures act as a superior measure of performance and significantly correlated with the MVA/EC. The regression results point out EVA, PBDIT and EPS as significant variables. [ABSTRACT FROM AUTHOR]

In this paper, study is made about the Regional Rural Banks (RRBs) and their management of NPA in India. Due to lending process and weak credit appraisal system, the RRBs have accumulated NonPerforming Asset (NPAs). NPAs adversely affect the capital adequacy ratio that reveals the financial health condition of a bank. The study examines and point out the performance of loan portfolios, the amount of NPAs, problem faced due to existence of NPAs and decision making process of NPA Management in the RRBs. This paper studies samples among 86 regional Rural Banks in Tamilnadu, India. The results are derived from the use of statistical tools like Percentage analysis, ANOVA Test and Karl Pearson's Coefficient of correlation & accordingly suitable suggestions have been made for effective management and controlling of NPAs Overall, we found that the ratio of gross NPAs to total assets and ratio to gross NPAs to total advances in RRBs has constantly decline over the period of time. [ABSTRACT FROM AUTHOR]

This Paper deals with the impact of Capital adequacy requirements on credit flow in scheduled commercial banks in India. The study assesses the impact of important demand side variables and supply side variables particularly capital standards on credit growth in scheduled commercial banks in India. The panel data study examines the capital regulation impact on credit growth in Public Sector Banks (State Bank of India and its Associates, Nationalised Banks), Foreign Banks operating in India and Indian Private Sector Banks. The findings suggest that the credit growth of Indian Private Banks is better than the Public Sector Banks and Foreign Banks operating in India and the regulatory pressure through capital adequacy requirements doesn't result in credit crunch in India. Whenever banks desire to reduce the supply of credit, they increase the level of govt. securities in their assets portfolio as the banks get safe returns from these securities. [ABSTRACT FROM AUTHOR]

In Nagaland, the function of Scheduled Commercial Banks has been started with SBI in 1962, a year before Nagaland was granted the status of a full fledged state of Indian Union. The paper deals with review and examining the growth and development of SCB in Nagaland. The paper examines the composition and growth trend in the deposits as well as credits of SCB in Nagaland. The paper also evaluate the performance of Scheduled Commercial Banks in terms of various parameters. The paper tries to find out the defects and suggest remedial measures for improving the performance of Scheduled Commercial Banks vis-à-vis socio-economic development of Nagaland. The period cover under this study is from 1992 to 2005 of Scheduled Commercial Banks in Nagaland. The study revealed that there is a need of organizational and managerial effectiveness as well as adequate knowledge of banking to contribute towards the socio economic development of Nagaland. [ABSTRACT FROM AUTHOR]

Small Scale Industries (SSIs) have emerged as an engine of growth in several developed and developing economics of the world. This paper analyses, financing of the SSIs by the commercial banks, operating in Madurai District under the lead bank scheme. The study analyses the performance of financing SSIs by commercial banks in Madurai District and the performance scores of loans grants of SSIs by commercial banks using Friedman's Test. The result of Friedman's test indicates that there is no significant difference in the performance of commercial banks of different classifications operating in Madurai District in lending to small scale industries during the period under study. The performance scores reveal that State Bank Groups have exllibited a high range of performance score (viz., 50%) resulting a high record of achievement in finance when compared its target, followed by National Commercial Banks (49%) and Private Sector Banks (33%). [ABSTRACT FROM AUTHOR]

With the changing scenario of the banking industry in the liberalized era, the importance of efficiency has assumed a critical significance for the viability of the public sector banks operating in India. Narasimham Committee on Banking Sector Reforms has recommended drastic changes in the banking system owing to decline in productive and operational efficiency. This paper studies the relative efficiency of public sector banks from 1991-92 to 2003-04 using the Average Compounding Growth Rate (ACGR) method. Given the confidence and competency, and the willingness to innovate, the Indian banking system is poised to scale new heights in the years to come. Operational & productivity parameters are a major concern of public sector banks in India. After liberalization, the performance of public sector banks has improved a lot and they have become more innovative and have a larger market share in today's competitive era. [ABSTRACT FROM AUTHOR]

Corporate governance is an instrument for strengthening overall effectiveness of corporate enterprise in the corporate world and helps to optimize the goals of corporate entities within the boundary of corporate environment. With the above backdrop, the present paper deals with various issues of corporate governance relating to its concept and importance. This paper also describes various committee issues of corporate governance in the Indian economy and relates it with Indian banking system. Indian banking sector plays a catalytic role because of the critical nature of the relationship with business/ corporate sector and large public ownership. The change over from administered controls era to liberalization era followed by implementation of financial sector reforms end prudential norms have brought about new issues and challenges for implementation of corporate governance guidelines in the banking sector. [ABSTRACT FROM AUTHOR]

The global financial crisis has compelled regulators to focus on the necessity of resilience of banks towards risks and sudden financial shocks. Market Valuation of banks require risk to be evaluated using bank assets and equity which can be incorporated only through Black- Scholes Merton Model. This paper develops an algorithm in Matlab to evaluate two non-linear equations used in Black-Scholes-Merton option valuation approach for calculation of the market value and volatility of bank's assets for a random sample of 13 Public and 8 Private sector banks in India over the period from March 2003 to March 2012.Further, it calculates yearly Z-score for each bank, allowing for capital adequacy as per the Basel II and III norms, for the periods before and after 2008 financial crisis. Findings indicate a resilient Indian banking system with differential in risk observed in assets and equity between public and private sector banks. [ABSTRACT FROM AUTHOR]

The present paper makes an attempt to study the problem of Non Performing Assets (NPAs) in public sector banks and also its impact on the performance of these banks. Impact of NPAs on the profitability of the banks is analysed by applying multiple regression model. Impact of NPAs on the productivity, achievement of capital adequacy level, funds mobilization and deployment policy of the banks is also analysed. NPAs not only affects the performance of the banks but also puts irrepairable harm to the entire economy. It endangers the very foundaion of the credit system. Concerted efforts are required at RBI, banks and Judiciary level to control the menace of NPAs. Efficient legal framework, improvement in credit appraisal and monitoring skills of banks and strong political will could enable the Indian banks to find satisfactory solution to the problem. [ABSTRACT FROM AUTHOR]

The competition in the Indian banking industry has intensified since the financial liberalization, which started in the early nineties The paper tries to examine changes in bank productivity growth through employing the Malmquist Total Factor Productivity (TFP) index. The study also decompounds the total factor productivity change of banks into technological progress, pure technical efficiency and scale efficiency change. Overall total factor productivity of banks was almost stagnant during the study period. The contribution of technological progress towards productivity is declining, however, technical efficiency and scale efficiency has been improved for all banks. The highest TFP growth has been observed among public sector banks, followed by old private banks (mostly in terms of increasing efficiency in catching up with new private and foreign banks), while both new private banks and foreign banks recorded decline in TFP growth. [ABSTRACT FROM AUTHOR]

Asset Quality of the banks is one of the most important indicators of the financial health of the Banks. It has been observed that although Indian banks survived the financial crisis of 2008-09 in contrast to their global counterparts, they have now been reported to have a turn of fortune with an alarming increase in their non-performing assets. Infact, the public sector banks have reported a greater increase in their bad loans as compared to the private sector banks (PSBs). This has been majorly attributed to the PSBs lending towards priority sector and the infrastructure sector. The current state of Indian economy and the huge asset-liability mismatch in infrastructure lending has left most of the public sector banks with mounting NPAs mostly generated from the infrastructure loans. The spillover maybe soon felt on the private sector banks and may create a systematic risk for the entire banking system. Corporate bond market has developed rapidly since 2007. [ABSTRACT FROM AUTHOR]

Indian economy witnessed a major structural break with economic liberalization in the nineties. The viscous circle of low economic growth and development was broken by phasing the process of removal of controls in the economy. The existing literature reveals the fact of phenomenal rise in income growth as well as rising divergences across states and regions on several grounds. The present study tries to explore that the divergences in allocation of commercial bank credit over time may result into the growing disparities in growth of incomes in the states of India. The study observes diverging tendencies in per-capita credit and aggregate credit in the post reform period among the states. The study further reveals that's agriculture and industry converge (pre reform) and industry and services diverge (post reform). [ABSTRACT FROM AUTHOR]

The NPAs are considered as an important parameter to judge the performance and financial health of banks. The level of NPAs is one of the drivers of financial stability and growth of the banking sector. The presence of NPAs has an adverse impact on the productivity and efficiency of Indian banks which results in the erosion of profits. To face the global challenges and to maintain the liquidity and profitability, it is essential to maintain the NPAs at low level through efficient recovery (before they become bad debts). The issue of mounting NPAs is giving jitters to banking sector particularly in a developing economy. This article attempts to focus mainly on the impact of NPAs, suggestions to reduce the NPAs, observing the scenario of nonperforming assets at global level and at national level. The data on NPAs in Indian scheduled commercial banks have been collected for analysis. The results are derived from the statistical analysis and accordingly suitable suggestions are given to contain the NPAs. [ABSTRACT FROM AUTHOR]

Banks in India like other parts of the world are keeping their stock of interest bearing securities under three categories viz. AFS, HFT and HTM. The earnings of portfolio declared in the annual results are dependent upon different accounting guidelines for each of these categories. Existing guidelines coupled with existing level of disclosures reveal less and hide more making it difficult to compare the inter bank performance. Proposed method fulfills the need by factoring in initial and end appreciation / depreciation making gross earnings more effort elastic. The proposed method also takes care of shortcomings of the existing methods; acts as a sound management information system and makes inter bank comparisons more realistic and meaningful. It overcomes the problems encountered in measuring performance due to different regulatory guidelines as well as due to classifications of securities into different categories. Induction of transfer pricing refines the process further. [ABSTRACT FROM AUTHOR]

The article presents a case study of the financial performance of commercial banks in agricultural financing in the Cachar District of Assam, India during 1990-1991 to 2003-2004. It is inferred that agriculture is an essential sector in the achievement of economic sufficiency in the Cachar District. The availability of agricultural credit from commercial banks has been evaluated.

CNX bank nifty trading performance represents the state of Indian banking sector and thereby evaluates the socio-economic objectives. Using bivariate IGARCH (1, 1) model for both CNX bank nifty and nifty futures this study found that there persist long-run relationship between the spot and futures prices and thus returns. Here, this study calculated the futures prices with the usual cost of carry model considering the call rate as the proxy for the financing rate. This study also found that the hedge ratios for both the index futures are negative and caused the market as imperfect one. In this situation, investment decision requires the optimal investment preferences and choices with resource generations and diversifications. The study confirms that there is a living run relationship between the spot and future prices and hence returns exist for both the index futures. [ABSTRACT FROM AUTHOR]

Merger and consolidation exercises taking place in Malaysia are just the beginning of a strategic transformation to enhance and upgrade the quality of the domestic financial sector to world class status, preparing them to embark on open competition in line with the World Trade Organisation's (WTO) agenda for services. The second pressure facing smaller domestic banks is the increasing scale of the three biggest banks, which are leaving most of the smaller banks behind. It is obvious that the smaller banks missed the window of opportunity to capitalize on their position as new anchor banks after the first wave of consolidation at the turn of the millennium. In general, this study is aimed to investigate the impact of the merger to the banking industry as well as the impact of the liberalization of the financial market in Malaysia. [ABSTRACT FROM AUTHOR]

Nations around the globe are seriously concerned to develop both the agriculture and the rural areas. Agriculture and rural development has not attracted the desired investment and the financing pattern is largely traditional. The corporates, major banks and financial institutions have played marginal role. The funding available to agriculturists, their resource position, education, dependence on nature. and natural resources, poor returns on investment and such other factors has not attracted desired investment. What feeds the world and the nation unfortunately is not fed the same way in a reciprocal way by society. Serious strategy formulation and implementation calm greatly help to avert this adverse situation. India and Hungary have similar challenges before agriculture and rural development. Both countries have seen boost of Agriculture and empowerment of society with enhanced flow of trade, services and products. [ABSTRACT FROM AUTHOR]

Several tables are presented that show the economic and financial statistics of India from 1950 to 2006, including the selected economic indicators, money and banking, and foreign investments.

The foremost role of development banks is to finance economic development in targeted industries, sectors or regions. This role is especially crucial in promoting growth in developing countries, such as India, and in improving prospects for relatively less developed regions of these nations. Both the policy of the central Indian government and the mandates of the nation's development banks call for balanced regional development and assistance to 'backward' areas as means for effecting equitable economic prospects. To assess the level of achievement of these objectives, we investigated the quantum of state-wise assistance provided by six Indian development banks over the 1996-2001 period, focusing on the relative distribution of finance between more and less developed states. Analysis of data revealed statistically significant disparities in development bank financing, on a state-wise basis, to the detriment of less developed regions. We explore a range of possible explanations for this observation in attempting to determine whether the performance of Indian development banks in financing and fostering regional development is misdirected or misunderstood. [ABSTRACT FROM AUTHOR]

Several tables are presented that provides statistics on economic indicators, money and banking, international finance and industry, including Gross Domestic Savings in India, Gross Fixed Capital Formation in India, and Change in Stock in India.