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This study reports the results of an empirical investigation of the extent of voluntary disclosure by 38 listed banking companies in India. It also reports the results of the association between company specific characteristics and voluntary disclosure of the sample companies. The study reveals that Indian banks are disclosing a considerable amount of voluntary information. The findings also indicate that size and assets-in-place are significant and other variables such as age, diversification, board composition, multiple exchange listing and complexity of business are insignificant in explaining the level of disclosure. However, this paper has contributed to the academic literature that financial institutions provide voluntary corporate information including social information as discharging their social responsibility and corporate citizenship. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment. [ABSTRACT FROM AUTHOR]

Purpose - The current exploratory study is an attempt to discover the factors affecting a bank's decision to adopt Internet banking in India. Particularly, it seeks to examine the relationship between the bank's adoption decision and various bank and market characteristics. Design/methodology/approach - The data for this study consist of panel data of 88 banks in India covering the financial years 1997-1998 to 2004-2005. Logistic regression technique is employed to study the relationship. Findings - The results show that the larger banks, banks with younger age, private ownership, higher expenses for fixed assets, higher deposits and lower branch intensity evidence a higher probability of adoption of this new technology. Banks with lower market share also see the Internet banking technology as a means to increase the market share by attracting more and more customers through this new channel of delivery. Further, the adoption of Internet banking by other banks increases the probability that a decision to adopt will be made. Research limitations/implications - The primary limitation of this study is the scope and size of its sample as well as other variables (e.g. market, environmental, regulatory etc.) which may have an effect on the decision of the banks to adopt Internet banking. Originality/value - An understanding of the factors affecting this choice is essential both for economists studying the determinants of growth and for the creators and producers of such technologies. From this perspective, understanding the factors determining the adoption of technology becomes highly relevant from the policy point of view. Moreover, the studies on the adoption of financial innovations are related to developed markets, e.g. US or European banking markets. Hence, this paper contributes to the empirical literature on diffusion of financial innovations, particularly Internet banking, in a developing country, i.e. India. [ABSTRACT FROM AUTHOR]

The debate on bank capital regulation has in recent years devoted specific attention to the role that bank loan loss provisions play as a part of the overall minimum capital regulatory framework. The paper examines this issue in the Indian context, exploring the available evidence about bank loan loss provisioning in the Indian context. Using data on Indian banks for 1997-2005, evidence is found in favour of both earnings and capital management by Indian banks. [ABSTRACT FROM AUTHOR]

The transformation of Bank of Baroda, one of the largest commercial banks in the public sector in India, into a highly customer centric, technology driven and an innovative entity in retail and SME (small and medium enterprises) segments represents one of India's most remarkable success stories and one of the quickest turnarounds ever in public sector banking. Known as an important player in commercial banking with international operations for several decades, the bank was gradually declining in recent years. In an environment of competition within the public sector as also due to entry of private banks with latest technology and young staff, the bank plunged into an unprecedented spiral of failing to innovate and adopt new technology. Drastic action was required to regain its leadership position in the public sector space. Over the next one and a half years, the bank was back in reckoning and was firing on all cylinders. It retained its core business on track with a bang, restored its image as the most vibrant player among public sector banks (PSBs) through wide-ranging initiatives such as a logo change, hiring a cricketing icon as brand ambassador, heightened credit growth, improving the work culture, initiating many customer-centric initiatives and restoring the customer base, derisking the treasury portfolio, and winning several accolades and awards. Today, Bank of Baroda has embarked upon more wide-ranging changes and a new vision to change the bank from a 'vanilla banking' entity to a 'multi-specialist bank'. The author, who joined the bank as a HR specialist and eventually rose to become CEO of the bank, extensively used his HRD knowledge and academic background to initiate changes to harness energy in the bank's 40,000 staff to drive organization change. Achieving a successful outcome seems to be far more difficult for a public sector bank with a legacy culture, high degree of unionization, poor compensation and aging staff. In spite of these constraining factors, the paper argues that it is through mobilizing the passion of people that leadership can transform organizations and put them on high growth trajectory. [ABSTRACT FROM AUTHOR]

The paper employs a sample of listed Indian manufacturing firms over the period 1995–2004 to examine the factors influencing the concentration of bank debt in total debt. The results indicate that the factors vary by firm size. Small to medium-sized firms have a high concentration of bank debt. The results support the reputation view that firms face differential debt choice as they grow larger. When evaluating bank regulations, policymakers need to consider the importance of the reputation-building service which banks provide to businesses. [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]

The paper examines how banking relationships and managerial ownership relate to firm valuation. It is argued that both the number of banking relationships (which serves as an external monitoring function) and managerial ownership (which serves as an internal monitoring function) affect firm value, while internal monitoring by managers and external monitoring by banks were viewed as substitutes or complements. After controlling for the effect of exogenous variables, the results reveal the existence of a complementary monitoring effect between banks and the managerial group. On the other hand, the results indicate that increased external monitoring by banks will simultaneously raise the incentive on the part of managers to engage in internal monitoring. Also, firm valuation is found to be a significant determinant of managerial ownership. A disaggregated analysis of firms according to size and leverage suggests the existence of a complementary monitoring effect between banks and managers, except for small-sized firms. Copyright © 2007 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

In this paper we use data from the years 1997–2003 to evaluate the size efficiency, as distinct from scale efficiency, of Indian banks. Following Maindiratta [Maindiratta A (1990) J Econ 46:39–56] we consider a bank to be “too large” if breaking it up into a number of smaller units would result in a larger output bundle than what could be produced from the same input by a single bank. When this is the case, the bank is not size efficient. Our analysis shows that many of the banks are, indeed, too large in various years. We also find that often a bank is operating in the region of diminishing returns to scale but is not a candidate for break up. [ABSTRACT FROM AUTHOR]

The Indian payments market, traditionally dominated by cash and other paper-based instruments, is undergoing rapid change, presenting both challenges and opportunities for banks and other players in the payments industry. Part of the momentum is being provided by the Reserve Bank of India (RBI), which has established a board to oversee the development and regulation of the national payments industry, and has stated its vision to implement realtime gross settlement systems, launch cheque truncation capabilities, and create new networks aimed at increasing the role of electronic payments. Broader trends, such as the increasing emergence of private-sector banks, are also having a significant impact. Unlike public-sector banks, these institutions are not encumbered by the legacy of large branch networks with completely manual operations, and they have steadily deepened their presence in many parts of the payments business since India's banking industry was liberalised in the mid-1990s. In consumer (retail) payments, three initiatives are most attractive for payments players: increasing penetration and use of debit and credit cards; shifting use of cash and cheques to electronic payment methods; and leveraging the growth of mobile telephony. In corporate (wholesale)payments, there are two principal areas of opportunity: upgrading cash management products (including insourcing payments functions from corporate customers) and developing targeted offerings for small to medium-size enterprises (SMUs). Among the main overall challenges for banks are: finding new sources of revenue to make up for the stagnation or even loss of income from traditional payment products that thrived on inefficiencies; developing new products that can leverage the new payments infrastructure-including that related to mobile telephony -- and aligning technology and processes to deliver the new products; and, particularly in wholesale payments, ensuring that IT systems can seamlessly interface with those of customers in order to provide straight-through processing. [ABSTRACT FROM AUTHOR]

Abstract: The paper investigates the performance of Indian commercial banking sector during the post reform period 1992–2002. Several efficiency estimates of individual banks are evaluated using nonparametric Data Envelopment Analysis (DEA). Three different approaches viz., intermediation approach, value-added approach and operating approach have been employed to differentiate how efficiency scores vary with changes in inputs and outputs. The analysis links the variation in calculated efficiencies to a set of variables, i.e., bank size, ownership, capital adequacy ratio, non-performing loans and management quality. The findings suggest that medium-sized public sector banks performed reasonably well and are more likely to operate at higher levels of technical efficiency. A close relationship is observed between efficiency and soundness as determined by bank''s capital adequacy ratio. The empirical results also show that technically more efficient banks are those that have, on an average, less non-performing loans. A multivariate analysis based on the Tobit model reinforces these findings. [Copyright &y& Elsevier]

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]

This paper examines the liability structure of 68 commercial banks operating in India for eight consecutive years, 1992-2000. The special emphasis is on the influence of ownership structure and size in this regard. Time series and cross-section analysis of the liability structure of sample banks reveals that they use 17 units of debt for each unit of owned funds, which is consistent with limits set by regulation. After recapitalization, nationalized banks appear closer to foreign banks in terms of leverage; the leverage of private banks is closer to the State Bank group. Although networth to total assets ratio is highest for small banks, relatively lower reserve to networth ratio for them suggests that their shareholders are more interested in regular dividend income. With the notable exception of the foreign banks, the share of deposits has increased for all bank groups in the second half of the study. The relative importance of various types of deposits seems to depend on the nature and scale of operations of the sample banks. Borrowings constitute a miniscule portion of total sources of funds for the sample banks. [ABSTRACT FROM AUTHOR]

This paper provides a comparative analysis of the evolution of the technical efficiency of commercial banks in India and Pakistan during 1988-1998, a period characterized by far-reaching changes in the banking industry brought about by financial liberalization. Data Envelopment Analysis is applied to two alternative input-output specifications to measure technical efficiency, and to decompose technical efficiency into its two components, pure technical efficiency and scale efficiency. The consistency of the estimated efficiency scores are checked by examining their relationship with three traditional non-frontier measures of bank performance. In addition, the relationship between bank size and technical efficiency is examined. It is found that the overall technical efficiency of the banking industry of both countries improved gradually over the years, especially after 1995. Unlike public sector banks in India, public sector banks in Pakistan witnessed improvement in scale efficiency only. It is also found that banks are relatively more efficient in generating earning assets than in generating income. This is attributed to the presence of high non-performing loans. In addition, it is found that the gap between the pure technical efficiency of different size groups has declined over the years. [ABSTRACT FROM AUTHOR]

This paper formulates and estimates a small open economy model. From the estimates of the model, a measure of exchange market pressure and an index of intervention activity are constructed. The analysis of these two parameters highlights the fact that the Reserve Bank of India prefers to accommodate rupee depreciation, while aggressively preventing appreciation. The net sale of foreign exchange is resorted to only in times of crises. The impact of direct intervention is not found to be effective, as major part of the capital inflow is being sterilized. However, the large amount of foreign exchange reserves that the Reserve Bank of India has built up bears ample testimony to the Bank’s intervention. [Copyright &y& Elsevier]

Consequent upon the introduction of prudential norms as an integral part of financial sector reforms, the present paper investigates the relationship between changes in risk and capital in the Indian banking sector. A dynamic, multivariate panel regression model is formulated wherein changes in capital ratio depend on its lagged value, a range of conditioning variables and regulatory dummies. Our analysis reveals that: (i) the regulatory framework needs to be designed to encourage individual banks to maintain higher than stipulated capital levels to reflect their differential risk profiles; and (ii) there is no conclusive evidence of risk aversion among Indian banks. Copyright © 2003 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This study is based on the premise that the success/failure of financial sector reforms depends heavily on country specific factors and makes an attempt to examine these factors in the Indian context. The financial sector reforms analysed in this paper include the deregulation of interest rates, increasing competition and foreign ownership, and the introduction of financial supervision. We argue that an economic rationale for a gradualist approach to financial reform is that it is stability enhancing. Furthermore, we suggest that India’s complex political economy has resulted in a gradual approach to reform, and this approach has been successful along the dimension of banking stability. [ABSTRACT FROM AUTHOR]

This paper extends the literature on finance and investment by examining the source of finance constraints on the firm's investment decisions. Using a panel of 714 Indian manufacturing firms for the period 1993–98, we find that the degree of ‘finance constraint’ differs significantly across external suppliers of funds with investments being most sensitive to borrowings from development finance institutions (DFIs) and considerably less sensitive to funds from capital markets and commercial banks. Capital markets and commercial banks seem to use outward orientation as a signal of the firm's ability to succeed whereas DFIs do not seem to have adopted such a criterion. Copyright © 2002 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper reports on the development and application of a service template as a diagnostic tool for identifying opportunities for improvements in the service package. The operations in the branch of a bank in Bangalore, India, provide the context. For 21 service attributes, the gap between the expectations of a target customer group and the actual service experience is assessed through a customer survey. A service template graphically displaying the mean values of the responses for the expectations and the perceived service was constructed. Also, for each service attribute, tests of statistical significance for the mean values of the gap were performed. The results were used to develop priorities for improvements. [ABSTRACT FROM AUTHOR]

The issue of financial inclusion is emerging as the new paradigm of growth. Financial inclusion is defined "as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as the weaker sections and low income groups at an affordable cost"--(Rangarajan Committee). RBI and Government take various steps to generate wide awareness and expand the risk of banking services. Through different agencies the government offers loans to the targeted beneficiaries. Different schemes are introduced to popularize the financial inclusion. Panchayat and District Industrial centers are taking care of that in the rural areas and Town Committees, Municipalities are taking care of that in urban areas. Subsidized loans are allowed to the farmers. This reduces the dependency of peasants on the money lenders. The farmers committed suicide due to inability to repay their loans which are waived by the government to stop the repulsive suicide attempts by the peasantry. The waiver is linked to the financial inclusion for inclusive growth. The present paper is a comparative study on financial inclusion for growth penetration in rural and urban areas in Dibrugarh, Assam supported by the analysis of the empirical data available at hand. [ABSTRACT FROM AUTHOR]

Competition for the 2010 Daniel H. Wagner Prize for Excellence in Operations Research Practice provided the five finalist papers featured in this special issue of Interfaces. The prestigious Wagner Prize emphasizes quality and originality of mathematical models along with clarity of written and oral exposition. Authors from IBM's Watson Research Center won the competition with their innovative, diverse suite of models to improve critical choices for managing skilled personnel, choices so important in service industries; their models have been implemented in the IBM Integrated Technology Services business. A finalist team from Georgia Tech joined with the US Centers for Disease Control to solve a physician's often challenging problem of creating the best new schedule for a person who misses one or more previously scheduled vaccinations; the team's optimization approach is implemented in software now freely available to American physicians, and in software with Canadian rules soon to be available to Canadian physicians. A team from Kimberly-Clark Latin America and Penn State University developed optimization models to improve production and inventory control; after overcoming slow solution speeds with heuristics that furnish good solutions in minutes, the models have so far been implemented in Kimberly-Clark plants in five countries. A finalist team from the University of Texas at Dallas worked with Blockbuster, Inc. to improve efficiency and speed in Blockbuster's central system to fill orders from the company's numerous retail stores; implementation of the resulting optimization models led to reduced costs and more balanced workloads in the Blockbuster order-fulfillment center where different processing departments compete for shared resources. Finally, an India-based team from GE Global Research developed models to improve the selection of customers who receive special product offers from a GE commercial bank in Europe; the team's diverse models are now helping the GE bank to improve its customer responses. [ABSTRACT FROM AUTHOR]

India is basically an agriculture based country and the people of India still depend on agriculture productivity for their livelihood. Finance facility is the base to play main role for the development of the farmer for this various banking sector help for the development of the former and run various schemes like KCC, KVC, Agriculture loan, Fasal Bima Yojana and various Credit schemes. The main purpose of this research paper was to bring into light the contribution of nationalised bank in the economic development of farmer which play an important role in providing agriculture credit and to remove them from the clutches of local moneylenders. [ABSTRACT FROM AUTHOR]

Customer is the king is the very old saying. Delighting the customer is the new trend. The cost of retaining the customer is less than attracting the new customer. To retain the existing customer, banks are trying hard. Banks are offering new and innovative services to the customers to make him happy. A happy customer gets more business to the organization. Customer relationship Management is gaining significance in the current times. An attempt is being made to know the importance of CRM in Indian Banks. Banks should find out the profitable customers and try to retain them. From time to time banks should analyze and modify their strategies and policies to become competitive in the markets, for this they should adopt CRM analytics and Customer Centric Policies. This paper highlights the factors influencing the CRM in Indian public sector commercial banks. To analyze the services offered by the public sector banks to retain customers, without losing them to private players in the industry. The study concluded that private banks are doing better in terms of CRM and Public banks are following slowly to retain and attract new customers by adapting innovative technologies and strategies. [ABSTRACT FROM AUTHOR]

The article comments on the paper "The intellectual capital performance of the Indian banking sector," by Barathi G. Kamath, published in a 2007 issue of the "Journal of Intellectual Capital." The paper examines the use of the Value Added Intellectual Coefficient to measure the value-based performance of the Indian banking sector for the period 2000 to 2004.

An abstract of the paper "A Study on Factors Influencing Continuous Usage of Online Banking Services in India" by H. Kalaiarasi is presented.

An introduction to the journal is presented wherein the editor discusses various papers published in the issue including the level of satisfaction and factors affecting educational loans among students, customer relationship marketing in Indian banks, and the profitability of private sector banks.

The purpose of this article is to study the implications of the development of electronic payment systems in the Indian markets. The electronic payment systems that emerged as a technological innovation, to provide customers with an efficient and secure means of payment, can have far-reaching implications for the country's banking system, the role of its central bank, its monetary policy, and its economy. This article identifies the policy issues that arise from the growth of these modern payment systems and discusses the possible policy responses by the Reserve Bank of India to mitigate such impacts. The article concludes that while we cannot slow down the pace of technological innovations, understanding these implications can contribute to finding policy responses and solutions, and building effective safeguards into the system. [ABSTRACT FROM AUTHOR]

This study explored how emerging economy banks are rebalancing their interest income and non‐interest income to ensure stability. We set our study in India during the period 2005–2017. Interestingly, we observe that time–series correlation of interest income growth and non‐interest income growth for public sector banks as well as for private banks is on the negative side. We applied panel vector auto regression and generalised method of moments methodology. This study found that when bank interest income falls, they try to increase their non‐interest income to offset their losses to a certain extent, and the trend is increasing. Public sector banks are overall substituting non‐interest income for a reduction in the margin, and there is an increasing trend for this substitution. Based on the size of banks, it has been found that change in non‐interest income in the subsequent year due to change in interest income in the previous year is there for large banks, whereas no such significant change has been found in case of small banks. [ABSTRACT FROM AUTHOR]

Using data on Indian banks for 1996-2007, this article examines the impact of foreign banks on the domestic banking sector. The analysis suggests that foreign bank penetration improves profitability and asset quality, although it dampens spreads. The results are robust to alternate measures of foreign bank presence. In addition, foreign banks appear to impact the maturity of credit portfolio of domestic banks. Finally, the results also support the fact that foreign banks typically charge lower interest rates as compared to domestic banks. [ABSTRACT FROM AUTHOR]