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The paper seeks to examine the broad trends in research on post-merger customer satisfaction, loyalty, and service quality in the banking sector. It identifies the top contributions to the body of knowledge in the sector in terms of authors, journals, countries, and institutions by examining the relevant literature in this area. The 189 research publications under analysis have a combined 455 authors, with more multiauthor studies than single-author ones. India has the most (111) publications in the dataset, while China has received the most citations overall. Graphic Era (Deemed to be University) from India is the leading research contributor in this area. The network visualization exercise also showed a substantial level of international cooperation in this field. [ABSTRACT FROM AUTHOR]

Banks are shifting from paper-based to electronic transactions. As of today, 50% of total transactions are electronic-based, and this share is increasing at an incredible rate. Hence, there is a need to assess the effects of electronic banking on business operations of banks. In this light, the present paper analyzes the computerization, expenditure on electronic banking and cost-benefit analysis of paper-based and electronic transactions. The paper notes that there is a swing from paper-based transactions to electronic transactions, with electronic transactions escalating drastically and earning business value at a triple rate. Per transaction value is 168 times per transaction cost which shows sound returns. The paper also evaluates the effect of transactions on cost and value through correlation-coefficient and concludes that electronic banking has positive and significant impact on cost and value of transactions. [ABSTRACT FROM AUTHOR]

The study aims to capture the mediating effect of technical efficiency on the relationship between credit risk and financial performance in the Indian banking sector. This paper is based on secondary data extracted from the financial reports of commercial banks operating in India for the year 2021-22. Simple mediation analysis is used to analyze the data. The technique of data envelopment analysis (DEA) was deployed to calculate technical efficiency score. The findings show that credit risk has a negative and significant relationship with both financial performance and technical efficiency when taken alone as an independent variable. Overall, the results show that technical efficiency fully mediates the relationship between credit risk and banks' profitability. The mediating effect suggests that scheduled commercial banks operating in India can achieve both technical efficiency and good financial performance through vigilant supervision of credit risk. With specific reference to India, such empirical work showing the mediating effect of technical efficiency on financial performance and credit risk has not been taken up before. The findings of the study are expected to provide a better understanding of the role of managing nonperforming assets in determining technical efficiency and financial performance. [ABSTRACT FROM AUTHOR]

This paper examines the importance of Net Interest Margin (NIM) for banks' profitability and investigates whether the banks with higher NIM face cost complacency and suffer from adverse selection in their credit decisions and hence, higher Non-Performing Assets (NPAs). It evaluates the relationship of the level of NIM with the banks' wage and nonwage operating expenditure, Cost-Income Ratio (CIR) and gross NPA for scheduled commercial private sector banks and scheduled/non-scheduled Urban Cooperative Banks (UCBs) in India. The analysis shows that NIM has a significant positive impact on the profitability of banks. For scheduled commercial private sector banks, the gross NPA has the most profound negative impact on their profitability. For UCBs, the most significant negative impact comes from wage CIR. For none of the banks, credit delinquency increases with a higher NIM. While operating cost per rupee of assets is seen at an elevated level for banks with a higher NIM, the impact of the higher cost is more than offset by the increased income, and hence, the paper shows that NIM is one of the important determinants of bank's profitability and a higher NIM does not necessarily cause cost complacency and credit delinquency. [ABSTRACT FROM AUTHOR]

Banks play a vital role in channeling investors' savings. This paper investigates the probabilistic interpretation of the bankruptcy risk--evolved by Hannan and Hanweck (1988)--in Indian Public Sector Banks (PSBs) through the Z-index approach. Z-index has been used to determine the insolvency risk for 20 PSBs for the period 2010 to 2021. The secondary data was collected from the websites of respective banks and RBI. The data consists of 20 PSBs' Return on Assets (ROA) and Capital Adequacy Ratio (CAR). The results show that except Allahabad Bank, all PSBs' index is more than 10, offering a better financial position during the study period. Since the Z-index measured for SBI is highest among all the 20 PSBs, its financial soundness is reported to be at the top level. Therefore, there is no risk of insolvency for those banks with a high Z-index. The paper provides insights on trends of solvency position among the selected banks. It is helpful in improving the knowledge of banks' bankruptcy prediction and in analyzing their financial soundness. The paper reveals that bankruptcy could be due to poor management and improper investment estimation, leading to insolvency among the banks. A bank should focus on its ROA to improve its quality and avoid bankruptcy. CAR is also a sound indicator for a bank to maintain good solvency. Therefore, CAR and ROA are the most critical indicators to measure the risk associated with an investment in the banking sector. [ABSTRACT FROM AUTHOR]

A challenge to the analysis of corporate governance lies in a large number of variables that define and shape it, and hence, identification of the key parameters improves the effectiveness of overall governance. This paper aims at the identification of key governance parameters of scheduled Urban Cooperative Banks (UCBs) in India through an empirical analysis. The quest for key governance parameters in this paper culminates in eight parameters, encompassing three core features, namely, members' participation, technically qualified and trained directors, and a system of accountability. Identification of these core governance features is the main finding of this paper. These core features, through their subtle influence, take care of the remaining aspects of the governance structure of scheduled UCBs and are useful not only for timely red-flagging in the supervisory processes but also for strengthening the governance of cooperative banks in India. [ABSTRACT FROM AUTHOR]

Securitization is an off-balance sheet tool that facilitates capital relief. However, in India, securitization originated three decades ago, yet, the market is still in its development stage. In this backdrop, this paper examines an innovative existing structured finance model--securitization as an emerging alternative for sourcing funds to tide over the liquidity and funding constraints in MFI sector. Currently, MFIs rely on lumpy cash flows from banks during Q3 or Q4, when banks are trying to fulfil their CAR needs. However, the structured instruments facilitate MFIs to access the capital markets to match their funding and liquidity requirements. The paper outlines the concept of structured finance and emergence of new asset classes, application of structured instruments in the area of microfinance, securitization models--Direct Assignment (DA) and Pass Through Certificate (PTC)--in MFI sector with insights from industry experts. It also examines the advantages to both originators and investors and suggests the prerequisites for MFIs contemplating approaching these markets. [ABSTRACT FROM AUTHOR]

Primary (Urban) Cooperative Banks (UCBs) in India operate under the provisions of the Banking Regulation Act of 1949 - As Applicable to Cooperative Societies (AACS). Considering the large heterogeneity in their asset sizes and the absence of any regulatory cap on their leverages, the principal objective of this paper is to understand the interrelationship of their leverage and scale of operations with financial performance. The analysis, based on a three-year pooled data sample of 140 well-distributed UCBs, shows a significant difference across the capital adequacy, leverage and Net Interest Margin (NIM), based on the scale of operations, but due to heterogeneous and skewed distribution of UCBs in terms of asset size, the impact of the scale of operations on the financial performance does not manifest very clearly. It, however, shows that the scale of operations is unrelated to the incidence of non-performing advances. Further, UCBs with higher leverages do not show superior financial performance in terms of key financial variables. However, banks with higher leverage do gain in terms of their Return on Equity (ROE). These findings provide nuanced guidance to the UCBs and are also useful for regulatory policymaking on the subject. [ABSTRACT FROM AUTHOR]

The use of technology has changed the way people communicate and interact with each other within their social circle. This has created opportunities for financial services companies to meet customer expectations through various alternative channels. Mobile banking is one of the channels which offers various multiple services to the customers in order to bypass the traditional branch-based retail banking. However, sharing personal financial information and payment information through mobile banking proves an obvious risk to the consumer. The amount of financial risk associated with the individuals varies from person to person as per their tolerance level. The aim of the present paper is to assess the effect of different levels of Financial Risk Tolerance (FRT) on adoption of mobile banking in India. The paper identifies the FRT levels of mobile banking users of India and then studies the effect of different levels of FRT (high, moderate, low) of users on adoption of mobile banking services. The findings of the paper are of help to the financial marketers to develop and offer various realistic options to the adopters as per their FRT levels. [ABSTRACT FROM AUTHOR]

Finding an optimal asset size and consequent scale economies remains a critical challenge for the cost efficiency and profitability of banks. For the Urban Cooperative Banking (UCB) sector, with large heterogeneity in asset size, an understanding of scale economies helps in improving their business model and also aids in benchmarking for consolidation. This paper presents an analysis of the relationship between asset size, operating cost, and profitability in scheduled Urban Cooperative Banks (UCBs). The paper examines the movement in total operating cost and profit in relation to variation in asset size after controlling for business, market, and environmental factors. It finds that expansion in asset size up to 87,983 mn leads to downward movement in conditional operating cost per rupee of assets. Similarly, it finds an upward movement in conditional profit before tax with an expansion in asset size up to the level of 43,462 mn. The paper does not find any benefit of scale economies on cost and profit beyond these levels. It finds no evidence of scale economies in large UCBs having an asset size between 100 and 500 bn. However, for a majority of small and mid-sized UCBs, opportunities for achieving scale economies through organic or inorganic growth are found. The paper finds no statistical significance of the environmental strength, arising out of the strong cooperative culture in certain states, on the scale economies in the UCBs. [ABSTRACT FROM AUTHOR]

The banking sector in India has undergone numerous structural changes, affecting the banking industry in particular and the economy as a whole. In this paper, the internal and external determinants of profitability of commercial banks in India after financial reforms are studied. Panel data techniques with the linear model of Bourke (1989), the methodology employed by Demirgüç-Kunt and Huizinga (1999), and Dietrich and Wanzenried (2011) are used in order to address the issues. Profitability of Indian banks is considered as a dependent variable, which can be measured variedly. However, four important variables, namely, Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM) and Liquidity (LIQ), are examined. A set of independent variables such as bank-specific factors, namely, Bank Size (SIZ), Operating Efficiency (EFF), Concentration (CON), Risk Index (RI), Capital Average Ratio or Average Capitalization Ratio (CAR), Privatization (PVT) and Quote (QUT) on the stock exchanges, and macroeconomic variables, namely, Gross Domestic Product (GDP) and inflation rate are taken into account. The selected 14 Indian commercial banks during the study period, have the influence of bank-specific determinants, except EFF, and macroeconomic determinants, except GDP, on banks' profitability. Indian commercial banks' profitability as measured by ROE, ROA and NIM has a negative relationship with regressors like SIZ, CAR, CON, and GDP. Fixed effect model is found to be the best fit under ROE, ROA and NIM. [ABSTRACT FROM AUTHOR]

A recent innovation in the Indian banking system is the emergence of Small Finance Banks (SFBs). These banks are expected to carry forward the task of financial inclusion by providing basic banking services and credit services with a differentiated model. The challenge of these banks is to meet the objectives of constructing a low-cost liability portfolio and an affordable lending structure supported by robust technology. This paper evaluates the performance of five SFBs in addressing these challenges since their inception. The study is based on secondary data, and applies the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method, a multi-criteria decision analysis technique, for overall ranking of the banks based on their performance. The study finds that SFBs have concentration risk on assets and liabilities side of the balance sheet. On the liabilities side, they have low current and savings account deposits and rely heavily on bulk deposits, while on assets side, the share of unsecured microfinance loan is disproportionately large. This anomaly needs to be corrected to meet the objectives envisioned by the Reserve Bank of India while conceiving the idea of SFBs. [ABSTRACT FROM AUTHOR]

Digital Banking Units (DBUs) are established to enable the digital ecosystem, which improves customer experience by facilitating seamless banking transactions and ensuring that banking services reach the last mile. The very purpose of DBUs is to benefit people in small towns and villages with digital infrastructure for banking services. 75 DBUs (four in Karnataka) were proposed in the Union Budget 2022-23. The success of DBUs depends on the rural customers’ digital literacy and preparedness for using digital banking services. The study aims to assess the perception of rural customers and evaluate their preparedness for adopting DBU services. Primary data was collected from 200 respondents using a structured questionnaire. Secondary sources include annual reports, RBI publications, research papers, journals, magazines, and newspapers. Descriptive analysis and factor analysis, using SPSS version 24, of the collected data were done. The study finds that the rural population is more accustomed to branch banking and their dependency on face-to-face banking is high, but the respondents’ education, occupation, and digital literacy level, their association with the bank, usage of debit cards, mobile banking, and Internet banking indicate their receptiveness to digital banking services. Though it is not their first banking choice, the respondents do use technologybased bank applications for certain transactions. Adequate digital infrastructure and awareness will encourage them to avail all digital banking services. [ABSTRACT FROM AUTHOR]

Built-in jeopardy in the operations of banks due to their fiduciary responsibility, high leverage, and liquidity gaps necessitates that their financial position and performance remain stable and healthy. The regulatory nudge towards capital adequacy for banks has been intended to make them financially sound. While academic research on the relationship between capital adequacy and financial performance of banks remains inconclusive, this paper reexamines the subject from the angle of intra-group differences in the financial performance of banks in relation to their level of capital adequacy. The study finds that the scheduled Urban Cooperative Banks (UCBs) in India with poor capital adequacy, or with capital ratios slightly above the regulatory minimum, do not exhibit better performance in any of the select financial parameters than their other counterparts, and show inferior performance against certain parameters. However, banks with very high capital ratios operate with higher margins but fail to efficiently leverage their capital funds. This study indicates that an optimum level of capital adequacy of around 15% is best suited, along with an equity multiplier of 15. This may help the scheduled UCBs to improve their return on equity, and strengthen their financial soundness and performance. [ABSTRACT FROM AUTHOR]

This paper looks at the process of trade financing decisions taken by banks and the inherent risks associated with such decisions for both import and export financing. Non-receipt of payment from the foreign counterparty for export bills financed by banks in India requires the fixation or 'crystallization' of the rupee liability of the bill after specified days in accordance with Reserve Bank of India regulations. The amount is then recovered by banks in rupees from the account of the exporter client. Using data on crystallized and/or overdue bills from the two large public sector banks in India, the paper identifies key independent variables which could impact the event crystallization or otherwise of the export bill. Using logistic regression analysis, we examine the significance of these variables and check the viability of the trade finance scoring model, which can help bankers to objectively ascertain risks associated with each trade transaction financed. [ABSTRACT FROM AUTHOR]

This paper addresses the aspect of detection of dissimilarity (in terms of 10 performance indicators) existing among major Indian banks. Towards attainment of the goal the wellknown Multidimensional Scaling (MDS) approach has been employed. The interesting outcome of the paper is that the MDS technique is capable of discerning the dissimilarity (in relative terms) existing in the overall performance behavior (based on a number of relevant performance parameters) in the case of 37 leading Indian banks during the period 2004-05 to 2013-14 based on data obtained on yearly basis for this purpose. The dynamics of the overall performance behavior over time (year after year) during the above-mentioned period with respect to the parameters studied has been obtained. MDS analysis reveals that the four banks-SBI, ICICI, AXIS and PNB-differ significantly from the other 33 banks in each year in the mentioned period. Thus, MDS approach brings out an important feature related to inter-banks' differentiating status where a comparison of different banks is performed with the help of several attributes or performance indicators. In the introduction section, an exhaustive and interesting review of the major research works undertaken on the performance of Indian banks (available in literature as surveyed by us) has been presented. [ABSTRACT FROM AUTHOR]

In the context of promotion of financial inclusion in India, Payments Banks (PBs) have a key role to play as they accept small deposits from the poor and offer them low value remittance services. The unique feature of PBs is the size of remittances performed through technology platform being too large and value of each transaction being too small. Consequently, risk in remittance services is high and increasing. Therefore, Reserve Bank of India (RBI) imposed regulatory compliance norms on the part of PBs, which include minimum capital, Capital Adequacy Ratio (CAR), deployment of deposits in government securities, Cash Reserve Ratio (CRR) and best management practices. These are expected to ensure the financial soundness of PBs, strengthen safety in remittance services and protect the interests of small customers at large. Though the number of PBs is just six at present, considering the emerging business potential, a few more PBs are expected to come up. But from the study of financial analysis of PBs, it is observed that they face numerous issues which need to be addressed. Towards this end, the paper offers suggestions, besides discussing the origin, regulatory aspects, activity profile and performance review of PBs. [ABSTRACT FROM AUTHOR]

The main purpose of the paper is to empirically estimate the value of equity in the case of public sector banks of India using excess return model. The paper also attempts to identify the key driver of value of equity among these banks. A sample of 11 public sector banks included in NIFTY PSU Bank Index was selected for the study. The study covered a time period of ten years ranging from 2007 to 2016. All the financial data pertaining to the banks was culled from CMIE Prowess software. One sample t-test and F-test were applied to test the significance of the value of equity of each bank and the entire sample, respectively. To identify the key driver of value of equity, a stepwise multiple regression was run between the dependent variable and a set of independent variables. The results of the study highlight that none of the 11 banks registered positive mean value of equity during the study period. The results are same for the entire sample. The study reveals that return on net worth is the positively significant predictor of the value of equity. On the contrary, stock beta, shareholder return, and operating profit to working funds ratio are negatively significant. The chief implication of the study is that higher return on net worth leads to increase in the value of equity of the banks. [ABSTRACT FROM AUTHOR]

The assessment of Information System Effectiveness (ISE) has been consistently reported as a key issue by organizational executives throughout the world. Despite considerable empirical research, the results on the relationships among constructs related to ISE are often inconsistent. Many researchers, taking a cue from the inconsistency of results in this area, have suggested that a synthesis across the numerous empirical studies is needed. The problem is partially due to the fact that organizational Information Systems (IS) cater to multiple stakeholders with differing expectations. Each category of stakeholders views success or effectiveness of such a system from a different perspective. Studies focusing on ISE in the literature have relied on many surrogates like user satisfaction, system usage, decision performance, user participation, information quality and so on. But till date, none of the models have singly attempted to capture all the aspects of an IS from users' perspective. The present paper thus aims at identifying the constituents of ISE in the Indian banking sector. The data was collected from the employees working in private and nationalized banks in India. A three-tier model has been proposed to assess the effectiveness of the IS. The implications are for system developers as well as policy makers who are responsible for the success of organizational IS. [ABSTRACT FROM AUTHOR]

Fixed income securities market is a major source of capital formation and financing for economic activities. Besides, it is a dominant source of funding for sovereigns and investment by banks/financial institutions in the Government Securities (G-Sec) market. G-Sec markets also provide a proxy of risk-free rate, which is one of the core concepts used in finance. Movements in yields of fixed income securities and spreads are seen as important benchmarks for various financial market activities. This paper looks at the impact of Covid-19 pandemic on the Indian fixed income securities market. [ABSTRACT FROM AUTHOR]

The Indian banking industry has passed through various phases of change marking its development. Performance of the commercial banks is an important indicator of the state and growth of the banking system in India which can be measured in different terms. This paper makes an attempt to analyze the performance of the four major banks in India, namely, Punjab National Bank (PNB), State Bank of India (SBI), ICICI Bank and HDFC Bank, for the period 2009-2014. The paper analyzes the impact of various performance parameters on the performance of the selected banks using secondary data. The performance of the banks has been measured using different ratios, and regression analysis has been applied to find the factors predominantly affecting the performance of the banks. The results show that net NPA ratio as a percentage of loans, savings deposit as a percentage of total deposits, priority sector advances as a percentage of total advances and total income as a percentage of capital employed are the factors predominantly affecting the performance of banks. [ABSTRACT FROM AUTHOR]

The Basel III framework was introduced by the Bank for International Settlements (BIS) after the 2008 financial crisis which revealed the shortcomings of the Basel II norms. All the countries are supposed to implement Basel III norms by March 2019. The Basel Committee has recognized that the capital adequacy of banks plays a critical role in banks' failure and has increased the total capital adequacy to 9%, of which Tier I capital is 7% and Tier II capital is 2%. Other than this, a countercyclical buffer has also been introduced, the implementation of which will start from 2015. The higher capital requirements are expected to raise certain challenges for the developing nations like India. The paper first analyzes the current situation of the Indian banks by classifying the banks into public sector banks and private sector banks, new banks and old banks, and domestic banks and MNCs, and then compares the results in each category. The paper then discusses that even though the Central Bank has done a great job in maintaining the capital adequacy, it does not necessarily imply that the banks are safe because despite adequate capital, banks can fail. The paper also discusses that it would not be easy for the banks to maintain capital adequacy once the countercyclical buffer requirements kick in. As the Government of India is the majority stakeholder in the public sector banks, the higher capital requirements could also impact the Indian economy negatively. [ABSTRACT FROM AUTHOR]

Internationally, the transformation in banking industry has opened up new opportunities for banks to diversify through own expansion and/or strategic association. They are focusing more on non-interest income as it enables to setoff the reduction in their interest income due to falling interest rate as well as increasing income from fee-based activities. Indian banking industry is also going through a phase of changing strategies to evolve in the competitive environment. Considering the importance of income diversification, it had become imperative to investigate how the prospects of non-interest income work in the Indian banks. This paper makes an attempt to explore income diversification in the Indian banking industry. Applying trend analysis and correlation, the paper analyzes the trends in interest income and non-interest income using aggregate and bank-wise secondary data from 2003 to 2016. Also, the paper studies the share of non-interest income components. The results reveal that in Indian banking industry, interest income is still the dominant source of income though the share of non-interest income is also increasing due to higher growth rate of non-interest income as compared to interest income. In non-interest income components, the share of investment-related other income is also the highest compared to the banking-related other income. Aggregate as well group-wise, public and private sector banks are having negative correlation between non-interest income share and interest income share, which means Indian banking sector is enjoying income diversification benefits. The results of Herfindahl-Hirschman Index (HHI) also show that private sector banks are more diversified compared to public sector banks. [ABSTRACT FROM AUTHOR]

Indian banking industry is plagued by continuously increasing Non-Performing Assets (NPAs). Fresh accretion to NPAs is an important reason for its poor performance as it requires higher provisioning and also higher write-offs-both affecting the overall performance adversely. In this backdrop, this paper examines the financial implications of slippage, provisioning and write-offs on the profitability of three groups of Scheduled Commercial Banks (SCBs), viz., public sector banks, private sector banks and branches of foreign banks, in India using their performance statistics from 2007-08 to 2018-19. For analysis and testing the hypotheses, t-test and correlation, besides descriptive statistics, are used. The study finds difference in the influence of three determinants, viz., fresh accretion to NPA, provisioning and write-offs on the profitability of domestic SCBs and branches of foreign banks, and between two groups of domestic SCBs, viz., public sector banks and private sector banks. [ABSTRACT FROM AUTHOR]

Branches are the principal interface between banks and public and as such play an important role in financial intermediation to support the economic activities. If banking markets were to become more concentrated through the process of branch expansion, small firms and marginalized people who live in unbanked and under-banked areas could suffer. This paper examines the level of concentration of branches of commercial banks in Kerala using Herfindahl Hershman Index (HHI) and the Four Firm Concentration Ratio (C4) and how it has changed over a period of time. Further, the paper studies whether the level of concentration of branches is justifiable in terms of banking requirements of districts and whether the branch expansion has taken those factors into account. The study reveals that more new branches are opened in districts where the existing branches have more business instead of exploring untapped business potential of districts that have relatively better economic activities but not able to transform those into banking business due to lack of sufficient number of branches. The results also reveal that financial inclusion initiatives have influenced branch expansion and they have marginally reduced disparity among districts in terms of reach and availability of banking service. [ABSTRACT FROM AUTHOR]

Over the last decade, the role of credit risk management practices in the overall risk management in the commercial banks was well accepted and banks have established a set of these practices, collectively known as Credit Risk Management (CRM) framework. The present paper evaluates the strength of CRM framework in the Indian banking industry, and makes a quantitative assessment of the overall CRM framework and each of its three major elements, namely, CRM organization, CRM policy and strategy, and CRM operations and systems. The CRM operations and systems are closely studied at transaction and portfolio levels. The paper statistically arrives at two potential areas of improvement that bank management should focus on in the near future, namely, credit risk monitoring at transaction level and credit portfolio risk analysis. The study provides new insights into CRM process and CRM framework in commercial banks. [ABSTRACT FROM AUTHOR]

This paper is an attempt to understand the growth of NPA, the reasons behind it and the extent of its spread across sectors. The paper gives an insight into the policy implications which could be governed by banks in order to control the devastation caused by NPA. This paper is divided into four parts: First it explains the macro level analysis among various variables such as GDP, Credit Growth, Gross NPA and GDP. Next, it explains sector-wise analysis and bank group-wise analysis of banking sector. Finally, the mechanism to deal with NPA is discussed. [ABSTRACT FROM AUTHOR]

Increasing evidence has been reported by researchers regarding the amplifying negative quality of fair value-oriented accounting regime. Critics have blamed the fair value accounting for amplifying the recent subprime crisis and causing a financial meltdown in the US. This paper investigates the contagion (negative) effect of introducing fair value accounting for commercial banks in India and its relationship with changes in the banks' Non-Performing Assets (NPA) ratio. It is found that there is evidence to suggest significant increase in the NPA ratios of the banks due to the introduction of fair value-oriented accounting of the banks' assets. The analysis suggests that increased bank contagion associated with fair value accounting is more likely to spread to banks that are inherently weak (in respect of capital adequacy and other parameters). [ABSTRACT FROM AUTHOR]

As with any new technology, e-banking too presents certain problems for banks. This paper attempts to highlight the difficulties encountered by bankers in using e-banking services. The survey data used in this research was collected through a questionnaire administered to 192 bankers in northern India. The study brings out two significant difficulties in the use of e-banking, viz., heightened stress and technical bottlenecks. To address these concerns, banks must put in place concrete development plans and a system of controls and security that boost competitiveness and ensure further progress. The paper presents the managerial implications of the results, along with suggestions for future research. [ABSTRACT FROM AUTHOR]

The paper analyzes the performance of public sector banks in India during the post-liberalization period. There has been a significant improvement in the performance of public sector banks after reform measures. The paper has used various accounting ratios pertaining to profitability, financial efficiency, operational efficiency and financial soundness to build performance index for banks. Principal Component Analysis method has been used to construct index and rank performance of banks over the last 10 years. Twenty-two parameters pertaining to operational and financial efficiency of banks have been considered to construct the performance index for public sector banks. Altman Z-Score of solvency analysis has been applied to banking sector with suitable financial, operational and other efficiency ratios. Logit model is used to construct the Altman Z-Score for public sector banks in India. The logit model is found to be robust as per its predictability of financial health of the public sector banks. It is found that reform measures have impacted positively in enhancing the stability and soundness of the public sector banks in India. The analysis has found that State Bank of India continues to be the number one bank in India and there is competition between Punjab National Bank, Canara Bank, Bank of India and Bank of Baroda for the number two place in different years. [ABSTRACT FROM AUTHOR]

The world's economy has grown and prospered in this age of electronic money. Digital component is increasing in our lives. Historically, the Internet has spread at a phenomenal pace than earlier generations of communications technology, from 1990 through 2000, the estimated number of Internet users grew manifold, impacting how people interact with one another, learn, do business, acquire information, and interact culturally. The digital economy is the latest manifesto to convert and reshape India into a digitally entitled society and knowledge economy by using the strength of digital tools, hardware and mechanism. Digitization automates the product and process, as a result of which both quality and production increase. Digitization mechanizes both product and process, through which standard and productivity increase. The emergence of digital technologies affects mostly Information Technology-concentrated sectors like economic and investment service sectors consisting of a "combination of technologies, information, computing, communication, and connectivity". Digitization has acted as a catalyst in various areas, including automobiles, travel and tourism, railway, real estate, and mortgage banking industries, for growth across the Indian economy. This paper discusses the role of digitization in the banking sector and how the quality of service can be improved in the banking and financial sectors in India. [ABSTRACT FROM AUTHOR]

India has traditionally been a cash-based economy with limited penetration of formal banking and financial services. The financial sector in India is witnessing a transformation with new payments banks being established in the country for achieving the dream of a fully banked country. The RBI, Indian commercial banks, the Government of India and other individual stakeholders have undertaken a number of initiatives in the past to promote financial inclusion. This paper tries to gather some insights on customer attitude and expectations that shape the marketing strategies of payments banks in India. The findings reveal that customer awareness, expectations, financial needs and value proposition affect positively customer's adoption and usage of services of a payments bank. Streamlining the operations of payments banks in India based on the study conducted shall help players to put in place people, processes, products and systems with strong analytics-driven marketing strategies, which can be easily scaled up in future to operate as a full-fledged bank. [ABSTRACT FROM AUTHOR]

To maintain healthy banking practices, the Reserve Bank of India formulates and executes a monetary policy with clear-cut goals and tools to be used. Monetary policy is one of the important tools of economic management in India. This paper makes an attempt to study whether policy rates have any impact on BSE Bankex. The relationship between the Banking index and various banking reserve rates is determined using correlation and multiple regression analyses. BSE-Bankex is used as a representative for banking index, whereas Cash Reserve Ratio (CRR), Repo Rate (RR) and Reverse Repo Rate (RRR) are used for banking reserve rates. The study is descriptive and empirical in nature. The data is collected through secondary sources, mostly through websites and RBI reports. The findings reveal that the policy rates do not have a significant impact on BSE Bankex. [ABSTRACT FROM AUTHOR]

The uneven pattern of the banking sector growth regionally has been assumed to be a source of disparity in the financial sector and one of the parameters of financial exclusion. The present study is an attempt to examine any decline in regional disparity in the growth of scheduled commercial banks in India in terms of deposits, credit, number of bank offices and population group-wise distribution of banking centers. Moreover, the paper seeks to examine the performance of different banking parameters between preand post-financial inclusion periods. An attempt is also made to understand the pattern of financial inclusion in Assam in terms of General Credit Card (GCC) and no-frills accounts in recent years. The paper found that although financial inclusion period showed some improvement among different banking parameters, the northeast region of India is lagging behind compared to other regions of India. [ABSTRACT FROM AUTHOR]

This paper applies multi-criteria decision making algorithms to arrive at the financial health of commercial banks in India, both in the public sector and the private sector. The various performance parameters considered arise out of the Basel guidelines, and we feel that our study will facilitate the regulator in monitoring the performance of banks over time. We also investigate whether the stock market has taken cognizance of these regulatory variables and valued banks accordingly. Our results indicate that while relative performance of private sector banks has not undergone much change, some public sector banks have improved over time. The results also reveal that the stock market does not attach much importance to these regulatory variables in the valuation of banks. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to empirically investigate the moderating impact of gender on perceived usefulness, perceived ease of use, attitude towards internet banking, benefits of internet banking, hindrances, as well as the influence of demographic variables on behavioral intention of the customers in the Indian internet banking context. A structured questionnaire was administered to collect data from 350 users of internet banking, representing a cross-section of population in terms of gender, age, education, occupation and income. A three-step hierarchical regression was employed to test the proposed research model. The measurement scales were tested for internal consistency of the data through various reliability and validity procedures. The results of this study suggest that the moderating effect of gender on the variables of perceived ease of use, perceived usefulness, hindrances and the demographic factor of the users, namely, age, is statistically significant. The present study would assist the marketing managers of internet banking to have an augmented understanding of the dimensions that encourage in embracing internet banking usage. The study contributes to the existing literature by exploring the dimensions in persuading the consumers' readiness to accept the usage of internet banking services moderated by gender differences, in the Indian context. [ABSTRACT FROM AUTHOR]

This paper studies the comparative performance of selected banks in India from 2008 to 2012, on the basis of certain criteria. Nowadays banks are performing a number of functions in addition to their two main functions, i.e., lending and accepting deposits. Public and private sector banks are competing with each other in bringing out new products and services. This paper analyzes the growth, performance and services provided by both public and private sector banks in terms of loans, cash credits, advances outside India, NPAs, net profits, etc. [ABSTRACT FROM AUTHOR]

This paper examines how public, private and foreign banks maintain their efficiencies. The bank-wise data for seven criteria of efficiency for financial years 2001-02 to 2009- 10 is decomposed, using factor analysis and multidimensional scaling, to obtain two different measures of efficiencies called operational and market-based efficiency. It is observed that for the study period, the banks differed significantly in terms of marketbased efficiencies but not in terms of operational efficiency. It is also observed that the foreign banks have the highest average market-based efficiency. [ABSTRACT FROM AUTHOR]

Financial services should be made available at affordable costs to all segments of the society. Moreover, as banking services are in the nature of public good, it is essential that they are available to the entire population without any discrimination. Then only total financial inclusion can be achieved. According to Pradhan Mantri Jan-Dhan Yojana (PMJDY), the 'National Mission on Financial Inclusion' launched in August 2014, technology can play a major role in financial inclusion in the country. The main hurdle to financial inclusion in India is the large population and low volumes, thus leading to unnecessary costs. The only way to bring down costs to an affordable level and to improve the reach of financial services to the remotest corner of the country is by effectively leveraging technology, specifically mobile technology. The mobile phone revolution that is transforming our country could also turn into a banking revolution in terms of reach and transaction. Moreover, with the advent of smartphones, almost all banking transactions are now possible through mobile banking. In India, mobile banking has received a thrust from both RBI and Government of India. However, its overall penetration remains low. This paper makes an attempt to highlight the findings of research carried out by the author to analyze the usage of mobile banking at two separate time intervals-pre-PMJDY (before the yojana) and post-PMJDY - in a specific Indian state. The author also provides suggestions as to how to leverage this technology and improve its penetration to further financial inclusion in the country. [ABSTRACT FROM AUTHOR]

The Government of India introduced Reverse Mortgage (RM) scheme in 2007 as a social security scheme which renders an opportunity for aging India to convert vast illiquid housing assets into regular cash streams. This paper makes an attempt to examine whether Indian elderly homeowners from metro and non-metro cities are significantly different in their awareness and willingness towards RM, as both regions are highly diversified in literacy, lifestyle, and cultural and traditional aspects. The results reveal that awareness and willingness of elderly homeowners towards RM is independent of geographic regions. The study advocates that equal efforts should be made in both metro and non-metro regions for promotion of awareness. To augment the willingness towards RM, the National Housing Bank (NHB) and other bankers should include fair, feasible and friendly terms so that the market size can be enhanced. [ABSTRACT FROM AUTHOR]

This paper aims to demonstrate the optimization of digital banking after demonetization of a series of currency notes denominated in 500 and 1,000 in India. The government initiated the demonetization process on November 8, 2016. India is a developing country and Indian banks have been offering digital banking service to its customers since 2008, but it is also a fact that the frequency to optimize this service was very limited and customers were not availing this service. Mostly, customers from metro and urban cities used the digital banking option for transactions. After demonetization, the customers have started to optimize this service due to less transaction time, easy to operate at any time at any place and for proper record of all the transactions digitally. This study examines whether there is any significant change in the utilization of digital banking services in India post demonetization. This is a descriptive study and the data for research has been taken from November 2015 to October 2017, i.e., one year before demonetization and one year after demonetization, and paired sample t-test has been used for analysis. [ABSTRACT FROM AUTHOR]

This paper makes an attempt to study the effect of liquidity management on the profitability of public and private sector banks in India. For this purpose, 27 public sector banks and 20 private sector banks have been considered for the periods 2011-12 and 2015-16. Cash-Deposit Ratio (CDR), Credit-Deposit Ratio (CRDR) and Investment-Deposit Ratio (IDR) have been used as independent variables to denote the liquidity management of the banks, while Return on Assets (ROA) and Return on Equity (ROE) have been used as proxy variables for the profitability of the banks. It is found that there is a significant negative effect of CDR and IDR on ROA. However, in the case of ROE, it is found that there is no significant relationship between banks' profitability and liquidity taking all the variables into consideration, irrespective of the type or form of commercial banks in India. This leads to the conclusion that the commercial banks can focus on increasing their profitability without affecting their liquidity and vice versa. [ABSTRACT FROM AUTHOR]

The process of deregulation and reforms in the Indian banking system resulted in the creation of an efficient and competitive banking system. The payment systems like card-based payment systems, ECS, EFT, RTGS, NEFT and CTS have offered a variety of services to the customers. During the last three years, all the electronic modes of payment have shown better growth than the physical check-based system. The Reserve Bank of India is, therefore, taking necessary steps to provide efficient and integrated payment and settlement system in the country and is also taking steps to mitigate the loss and risk. The present paper primarily aims to study the impact of electronic banking on payment and clearing system and identifies the important factors for the customers to choose electronic banking as a mode of payment. [ABSTRACT FROM AUTHOR]

This paper investigates the association between Capital Adequacy Ratio (CAR) (as set by the Reserve Bank of India in line with Basel Committee on Banking Supervision [BCBS]) and the credit risk of Indian commercial banks. The data for the study is a set of balanced panel of 43 (25 public sector and 18 private sector) banks for the period 1996-2016 which are triangulated from various secondary sources. The dependent variable credit risk is proxied by two measures, viz., Credit-Deposit Ratio (CDR) and Net Non-Performing Assets to Total Advances (NPA_TA). The independent variable is measured by the CAR as prescribed by the Basel norms. Apart from CAR, some bank-specific and macroeconomic variables are also used as predictor variables, namely, profitability, bank size, revenue diversification, liquidity, managerial efficiency, economic growth and inflation. With the help of panel data regression, the study reveals that when CDR is taken as a measure for credit risk, a positive association between CAR and credit risk exists, as against the model when NPA_TA is taken as a measure of credit risk where a negative association is observed. This implies that the regulatory capital positively impacts the quantum of lending operation of the banks as well as the quality of such lending. It is therefore inferred that banks have been undertaking risk set off measures in order to comply with the regulations and sustain a balance between profitability and stability. Moreover, it is observed that the different risk measures used to represent credit risk also have a bearing on the results. [ABSTRACT FROM AUTHOR]

The paper presents the results and interpretations of primary analysis of data collected through a questionnaire-based survey. The study assesses the adequacy of the existing banks' risk management framework and identifies the relevance of bank-specific characteristics and global financial crisis in explaining the banks' risk exposures. The outcome of the study suggests that though the organizational structure for risk management is perceived to be highly mature, a lot of issues need to be addressed by the RBI. It needs to formulate risk management guidelines, recognizing the relevance of bank-specific characteristics in the process of integrated risk management. [ABSTRACT FROM AUTHOR]

The Asset Liability Management (ALM) process in a bank is multidimensional in nature. The best possible trade off solution for profitability will have to strike an appropriate balance among the key drivers viz., advances, investments, deposits and other income (non-interest income), while simultaneously taking care of the regulatory and other constraints. The objective of this paper is to estimate, in a robust manner, the relative importance of advances, investments, deposits and other income in predicting profits. A comparative assessment is made of the two methods: Ordinary Least Square (OLS) and Robust Regression based on Least Absolute Deviation (LAD) in order to select the one that is appropriate in this situation. The results show that the robust regression outperforms OLS in terms of predictive accuracy, particularly in the context characterized by outliers and non-normal distribution with longer tails. Elasticity coefficients have been computed using the estimated slopes of the robust regression as inputs for arriving at the percentage relative importance of each driver of profitability. For this study, data filtering for inconsistencies warranted exclusion of some banks. Secondly, the focus is mainly on predictive accuracy and not hypothesis testing where OLS may still prove to be more useful. These are the two limitations of the study. [ABSTRACT FROM AUTHOR]

This paper evaluates the performance of the Indian banking sector during the post transition period (1997-2005). The productive performance, scale elasticity, efficiency and capacity utilization parameters are calculated using Data Envelopment Analysis (DEA). The empirical results calibrated through these models are analytic on several fronts. The positive trend of the reform process is visible through the increase in technical efficiency over the years of the post transition period. The cost efficiency parameters state that the nationalized banks are yet to exercise their cost minimizing principles compared to the other banks. Finally, the empirical findings show a significant difference between the technology and the market-based hypothesis. These results are in line with the distinction between economies of scale and the returns to scale. [ABSTRACT FROM AUTHOR]

The basic functions of most of the banks are the acceptance of deposits from public and lending funds to public, corporate, etc. This business of lending has brought trouble to individual banks as well as to the entire banking system, thus giving rise to credit risk, which is the risk of default. The present paper is designed to develop an internal credit rating model for banks which improves their current predictive power of financial risk factors. It also studies how banks assess the creditworthiness of their borrowers and how can they identify the potential defaulters so as to improve their credit evaluation. To achieve the above-mentioned objective, a research has been conducted considering the data for the last six years. Altman Z-Score model is used to arrive at an equation of the Z-Score, which helps the banks to predict future defaulters and take necessary action accordingly. The model, which has been developed, is an application of multivariate discriminant analysis in credit risk modeling. [ABSTRACT FROM AUTHOR]

Examining customer satisfaction has been a common practice among banking and finance researchers over the years. The main reason for continued interest in this area of research is the ever changing banking business environment across the world. The objective of the present paper is to investigate the determinants of customer satisfaction of Indian (Universal) banks. Data was collected from a sample of 180 respondents using convenience sampling technique. Factor analysis results reveals that responsiveness, tangibles, services innovation, reliability and accessibility, assurance, pricing and other facilities, problem solving capability and convenient working hours are the main determinants of customer satisfaction. [ABSTRACT FROM AUTHOR]

This paper addresses two main questions: Are the Regional Rural Banks (RRBs) and non-banking institutions of West Bengal performing well in the remotest part of rural areas? If so, how pervasive are they in priority sector lending? To address these questions, a study was undertaken by selecting a sample of 125 respondents from different remotest rural areas of West Bengal and the responses collected for each of the five different priority sectors, viz., agriculture, micro and small-scale enterprises, education, housing and others (includes Self-Help Groups (SHGs), joint liability groups, other backward classes, women, etc.), were analyzed. The study involved a two-step empirical procedure: exploratory factor analysis and Structural Equation Modeling (SEM). The findings of this study provide that apart from ‘others’ sector, none of the remaining priority sectors gives a positive indication about the effect of the performance of RRBs and non-banking institutions in priority sector lending. Due to the rising cost of Non-Performing Assets (NPAs), in the near future, operations of RRBs can only be improved if they are merged with sponsor banks or by going through the privatization route. [ABSTRACT FROM AUTHOR]