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Purpose: Human capital is a portfolio of rich skills that the labour possesses. Human capital has attracted significant attention from scholars. Nevertheless, empirical findings on the utility of human capital have often been divided. To address the research gap in the literature, the authors attempt to understand how human capital plays a significant role in financial development and economic growth nexus. Design/methodology/approach: The authors rely on secondary data published by the World Bank. The authors use econometric tools such as the autoregressive distributive lag (ARDL) model and related statistical tests to study the relationship between human capital, India's financial growth and gross domestic product (GDP) growth. Findings: Study findings suggest that human capital and financial development contribute significantly to economic growth. Further, the authors found that human capital has a positive and significant moderating effect on the path of joining financial development and economic growth. Practical implications: The study contributes to the human capital debate. Despite the rich body of literature, the study based on World Bank data confirms the previous findings that investment in human capital is always useful for the financial and economic growth of the nation. Originality/value: This paper reveals some unique findings regarding effect of financial development and economic growth nexus which opens the window of new dimension to think about their nexus. It also provides a different pathway to foster the economic growth by using human capital and financial development as together, especially in India. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate the role of corporate governance on the bank profitability of Indian banks vis-à-vis South Asian Association for Regional Cooperation (SAARC) nations. Design/methodology/approach: For the Corporate Governance Index, the authors examined board accountability, transparency and disclosure and audit committee, while Tobin's Q, return on equity and return on assets are used to measure the bank's profitability. The study used a two-stage analysis based on balanced panel data for robust findings. Sample of this study consists of 60 commercial banks from India and 60 banks from SAARC nations for the period of 2009–2021. This study used panel regression and a generalized method of moment approach using the CAMELS framework on banking industry-specific variables to determine their respective impacts. Findings: The findings of this study suggest that board accountability is positive and significantly affects the profitability of banks as indicated by return on assets, return on equity and Tobin's Q. In contrast, the audit committee has a positive and insignificant impact on return on assets, return on equity and Tobin's Q, while transparency and disclosure have a negative and significant impact on these metrics. Furthermore, the country dummy result shows a significant positive impact on all the bank performance parameters, implying that Indian banks have the highest degree of convergence with corporate governance as compared to other SAARC nations. Research limitations/implications: This study provides insight to the regulators, policymakers and financial institutions to evaluate the role of corporate governance in emerging economies. However, the findings of the study should be interpreted with caution, as the results are sensitive to the disparity between India and other SAARC nations' government policies, climatic circumstances and cultural or religious traditions. Originality/value: To the best of the authors' knowledge, this is the first attempt to gauge the performance of Indian banks vis-à-vis SAARC nations using the CAMELS framework approach. Further, findings of this study suggest some novel evidence tying corporate governance quality with the profitability of banks among SAARC nations. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the role of corporate governance practices in restraining earnings management in Indian commercial banks. Design/methodology/approach: Estimation of earnings management is based on discretionary loan loss provision and discretionary realised security gains and losses using Beatty et al. (2002) model. The effect of corporate governance on earnings management is examined by performing two-way least square dummy variable regression. Data for a period of five years (2016–2020) is collected from the Centre for Monitoring Indian Economy ProwessIQ database, Reserve Bank of India website, annual report of banks, National Stock Exchange and bank's website. Findings: Regression results exhibit that number of board committees, size and independence of audit committee and joint audit are significantly effective in curbing earnings management. Other board-related variables (size, independence, meetings and diligence) and audit committee variables (meetings and diligence) are not effective in restraining earnings management in Indian banks. Practical implications: The findings may prove to be helpful to regulators, board of directors and investors. It shows the weak area of corporate governance in India that is lack of autonomy to independent directors, which needs regulators attention and it also suggests that the number of independent auditors should be adequate for audit purposes. The board of directors must ensure the formulation of an adequate number of committees, which perform their own super specialised functions. This study brings an alarm to investors not to rely on reported earnings alone as they may be manipulated. Originality/value: This paper substantiates the scant literature on the role of corporate governance practices in restraining earnings management in banks of emerging markets and to the best of the authors' knowledge impact of joint audits on earnings management is previously unexplored in Indian banks, which are examined in this study. [ABSTRACT FROM AUTHOR]

Purpose: This paper compares the impact of corporate governance determinants of asset quality between India's public and private sector banks. The article identifies which corporate governance determinant is better utilized between the two sectors. The findings empower the banking regulatory authorities and individual bank administrators to handle asset quality in a better manner through a robust corporate governance framework. The study's findings are also helpful for other nations to make informed judgments by countries with economic relations with India. Design/methodology/approach: The article uses a dynamic panel data analysis method on novel data to achieve the purpose of this article. Using the General Method of Moments, the authors analyze 21 public and 24 private sector banks. The data used in this study span over a decade from 2010 to 2019. Findings: According to the estimates, there is a significant difference in the impact made by corporate governance determinants on public sector banks vis-à-vis private sector banks. The results find that while board size has a greater impact on the asset quality of private banks, board independence has a lesser impact. Gender diversity contributes to more reduction of NPAs in private banks. The article also concludes that public banks perform better in the utilization of audit committee while private banks are better at using board meetings, CEO duality and ownership concentration. Originality/value: Several papers have identified the determinants of asset quality in banks in various nations. However, to the authors' knowledge, none of the papers has identified the difference in the impact of corporate governance determinants between India's public and private sector banks separately. This article is the first to do so. [ABSTRACT FROM AUTHOR]

Purpose: International Integrated Reporting Council is in its 10th year of establishment and the integrated reporting (IR) framework released in 2013 was under revision in the year, 2020. Despite some significant developments in the past 10 years, the authors know very little about the perception of preparers towards IR. This paper aims to study the perception of the preparers and to understand the current status of the adoption of IR in India. Design/methodology/approach: The top 500 companies from ET 500 list have been analysed. Banks and financial institutions (a total of 69) have been excluded for the study. Out of 431 companies, the status of IR has been checked by the questionnaire-based survey. Principle component analysis, a dimensionality reduction technique was performed on the responses to understand the important components impacting the perception of companies. Also, a case study methodology has been adopted to compare and analyse the IR trends in the manufacturing and industrial sector. Findings: The result shows that the majority of companies have a positive opinion about IR and the three major components impacting their perception are – concise reporting, effective and transparent reporting and finally, better decision-making. Practical implications: The result of this study will be useful for the policymakers, regulators, companies who have or will adopt IR. Paper gives a relevant view to academicians for assessing the effectiveness and perception of IR. Originality/value: Very few studies can be found in India which focusses on analysing the perception of preparers towards the IR. Specially after the circular of SEBI in 2017, it becomes even more important to analyse the insight and awareness of the companies who have adopted IR. The paper is a timely and relevant contribution to the literature by providing insight over the opinion of preparers in India. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims at analysing the socio-economic characteristics, mobile phone ownership and banking behaviour as key determinants of digital financial inclusion in India. Design/methodology/approach: This study is based on the Global Findex Survey of the World Bank covering 3,000 adult individuals in India. Simple statistical tools such as descriptive statistics, chi-square test and regression analysis with a marginal effect have been used for the data analysis. Findings: About 35.2% of respondents have reported using digital financial services in the country. There is a significant association between the socio-economic profiles of individuals with the adoption of digital financial services in terms of gender, age, education, occupation and income. The marginal effect indicates that socio-economic factors, mobile phone ownership and banking behaviour of individuals towards borrowings and savings have indicated significant influence on digital financial inclusion. The analysis depicts that male with higher age, education, working status and higher income are more likely to adopt digital financial services. Further, individuals with mobile phone ownership and utilising banking in terms of borrowings and savings are more likely to adopt digital financial services. Practical implications: As digital banking services have emerged as a preferred channel for financial service delivery, this study provides timely insights on developing user driven-strategies for promoting digital financial services. Originality/value: Socio-economic characteristics, mobile phone ownership and banking behaviour are critical determinants of financial inclusion, so assessing its implications in the era of digitisation becomes imperative. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2022-0673. [ABSTRACT FROM AUTHOR]

Purpose: This study seeks to observe the association between mobile banking failures, use of m-banking and customer engagement to determine the contribution of user satisfaction towards m-banking as mediator between the aforementioned relationship. Design/methodology/approach: This study proposes a Mobile Banking Failure Model (MBFM) by integrating four failure dimensions (functional, system, information and service) based on Tan's failure model and DeLone and Mclean's Information Success model. In this paper, data was gathered from 338 respondents, who were the customers of banks and regular users of m-banking services of their respective banks in India. A survey method was employed to collect data. Structure equation modelling (SEM) was used to analyse the collected data. Findings: The results suggest that all m-banking failure dimensions (functional, system, information and service) affect the use of m-banking, which in turn affects user satisfaction towards m-banking and customer engagement. Additionally, this study found that user satisfaction towards m-banking acts as a partial mediator between the use of m-banking and customer engagement. Research limitations/implications: The banking failure and its use by customers have been examined in the context of mobile banking in India only and thereby limits the generalization of results to other industry and country contexts. Practical implications: The results of this paper will guide bank managers and policy planners in implementing MBFM in the Indian banking context, specifically for their m-banking apps. Originality/value: The use of m-banking, user satisfaction towards m-banking and customer engagement have been added as three supportive variables to the basic Tan's failure model and DeLone and Mclean's Information Success model to examine the impact of m-banking failure on bank customers' usage behaviour. This is a novel addition to the extant literature, as most empirical works in this domain are from industries other than banking (specifically m-banking) and with differing contexts. [ABSTRACT FROM AUTHOR]

Purpose: Good earnings quality (EQ) provides reasonable assurance as to the reliability of future cash-flow generation capability of the borrowing firms and thereby mitigates the credit risk of the banks. Against the backdrop of the stressed-assets problem in public-sector banks in India, adversely impacting the public finance system, this paper aims to explore the role of EQ of the borrowers in obtaining bank credit and the ways to mitigate the problem. Design/methodology/approach: Using a sample of listed 3,486 non-financial and non-government firms, the authors apply Jones (1991) model to estimate their EQ. Then, the authors conduct Hausman's (1970) test and find the existence of a two-way relation between bank finance and EQ. The authors adopt a two-stage least-square regression model to test the nature of the association between the two after controlling for firm and industry-level characteristics. Findings: The empirical results suggest that there exists a two-way negative association between EQ and bank finance implying that the Indian firms tend to report abnormal accruals to enhance tangibility for enjoying higher credit limits and easier access to bank finance. Also, the poor EQ is associated with earnings volatility, adversely impacting the credit quality. The findings are consistent. Practical implications: The study highlights the role of EQ in mitigating credit risk and addressing adverse selection problems in granting credit by practicing bankers. Originality/value: The findings of the study enrich the literature on EQ, capital structure, agency theory and public finance in several ways and have significant ethical and policy implications in bank-finance-led economies. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to develop a holistic understanding of the state of implementation of the Basel III regulation in India. It offers essential insights related to its impact on the macroeconomy, non-performing assets, capital flows and modifications required for the Indian banking sector. Another central aspect of this study is the identification of challenges faced by bankers in implementing Basel III in India. Design/methodology/approach: A survey was conducted with the help of a well-structured close-ended questionnaire. It was based on six themes identified after a comprehensive review of the literature. Seven experts validated the construction of the questionnaire. A total of 18 responses (42.8%) were received. Findings: The findings substantiate the importance of Basel III regulations. Although high costs and roadblocks are involved in its implementation, yet, the benefits are notable. Banking experts sense the necessity to modify the Tier 1 ratio, risk-weights and ratings. It is felt that credit ratings will impact the capital and investment flows received by India. Research limitations/implications: The number of responses limits the ability to conduct several statistical tests. Practical implications: The findings support the industry's view that Basel III focuses more on industrialized countries and that many emerging countries lack the technology and infrastructure to implement it. Originality/value: Since the implementation of Basel, the norm is a continuous process; the findings provide vital insights to regulators and academicians focusing on the Indian banking sector about its current state to aid in developing a future roadmap. This paper delivers important values as follows: a holistic view of banking experts on Basel III in India, required modifications, its impact and future scope of research in this area. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the impact of banking relationships and ownership concentration on corporate cash holdings (CCH) in 333 Indian micro, small and medium-sized enterprises (MSMEs) for nine years (2011–2020). Design/methodology/approach: The authors use system generalized method of moments approach to examine the impact of banking relationships and ownership concentration on CCH. Findings: The paper finds that the firm's number of banking relationships share a concave (inverted U-shaped) relationship with the cash holding levels. Initially, the positive relationship may signal weak creditworthiness of MSMEs or be a consequence of bank free-rider monitoring issues. The negative effect after a certain level shows that the competition among banks reduces the firm's financial constraints and therefore makes the firms hoard less cash. The authors also document an inverse relationship between ownership concentration and cash holdings. The authors' results suggest that the presence of large shareholders acts as efficient monitors, reducing the risk of potential agency conflicts and thereby managerial entrenchment resulting in lower cash levels. This association remains unchanged for MSMEs in the service sector. However, the quadratic association between banking relationships and CCH vanishes in the presence of a service sector dummy in the regression model. The authors find a significant positive linear relationship in this regard. Originality/value: To the best of the authors' knowledge, this is the first paper that studies banking relationships and ownership concentration as determinants of Indian MSMEs. [ABSTRACT FROM AUTHOR]

Purpose: The paper measures the degree of bank competition in Indian banking over the period 1996–2016. Using bank-level annual data, we revisit the case of banking competitiveness during the prefinancial and postfinancial crisis and examine whether the global financial crisis alters the level of bank competition in India. Additionally, this paper addresses the misspecification issues associated with the widely used Panzar–Rosse model in Indian banking context. Design/methodology/approach: We apply Panzar and Rosse (1987) H-statistic and evaluate the degree of bank competition by estimating the extent to which changes in input prices are reflected in revenues earned by banks. Subsequently, we link this measure of competitiveness to a number of structural indicators (HHI and CRn) to examine the structure-conduct-performance hypothesis, which assumes that a concentrated banking system can impair competition. The simple panel regression model was used to handle the empirical estimations. Findings: findings reveal that the Indian banking system operates under competitive conditions and earns revenues as if under the monopolistic competition. We also find evidence that Indian banks are competitive, even under a concentrated market structure. This observation runs, in contrary, to the prediction of the structure–conduct–performance hypothesis. The findings also indicate the differences in the estimated H-statistic value after considering the misspecifications of the P–R model. Practical implications: From policy perspectives, policymakers should focus more on maintaining an optimal level of bank competition by mitigating entry restrictions, exercising less consolidation and withdrawing overregulation from banking activities. A competitive banking industry ensures both efficiency and stability. Social implications: A competitive banking sector by lowering interest rates margin provides easier access to finance to both households and small and medium enterprises (SMEs). Originality/value: This is the only study that addresses the misspecification of the P–R model while assessing competition in Indian banking and provides a thorough understanding of the role of concentration on bank competition. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the relationship between perceived usefulness, ease of use and adoption of online banking by customers in the Indian context. Using the technology acceptance model (TAM) as the base, this study underscores the importance of perceived enjoyment, security and trust in influencing customer satisfaction. Design/methodology/approach: Using a structured survey instrument, this paper gathered data from 476 respondents in the southern part of India. First, the instrument's psychometric properties were tested, and hypotheses were tested using Hayes's PROCESS macros. Findings: The results indicated that (i) perceived usefulness and perceived ease of use are positively related to the attitude of the consumers to use online banking, (ii) attitude to use is positively related to adoption intention and (iii) adoption intention positively predicts customer satisfaction. The results also reveal that (i) perceived enjoyment moderates the relationship between attitude to use and adoption intention, (ii) trust moderates the relationship between adoption intention and customer satisfaction and (iii) security (second moderator) moderates the moderated relationship between trust (first moderator) and adoption intention on customer satisfaction. Research limitations/implications: As with any survey research, self-report measures have the inherent problems of common method bias and social desirability bias. However, the authors have taken adequate care to minimize these limitations. In addition, the research has implications for consumer behavior concerned with online banking. Practical implications: This study contributes to both practicing managers and the literature on online banking. The study suggests that bank managers need to focus on ensuring security and earning customers' trust to motivate them to adopt online banking. Social implications: The study contributes to society by unraveling the antecedent conditions leading to accepting innovative changes initiated by banks. Especially in rural and cooperative banks, customers adopting online banking helps save their time and energy in visiting the physical locations of banks. Originality/value: This study provides new insights into the complex relationships among variables contributing to customer satisfaction. The double-layered moderated moderated-mediation conceptual model developed and tested in this study is a novel idea that makes a significant contribution to the growing literature on online banking. [ABSTRACT FROM AUTHOR]

Purpose: Blockchain technology is predicted by many to be the most disruptive technology which might bring accessibility, efficiency and transparency in the financial industry. This study aims to understand the challenges likely to be faced by the Indian banking industry while adopting the technology. Design/methodology/approach: The study adopted a qualitative approach to explore the challenges faced by the banking industry in India. Semi-structured in-depth interviews with senior executives and academicians in the finance and the information technology industries helped gain explorative insights about the challenges. Findings: Thematic analysis suggested a framework comprising five challenges while adopting blockchain technology. These challenges relate to technology, organisation, operation, regulator and environmental context. Originality/value: The paper contributes to the limited literature on the nascent blockchain technology adoption in banking industry in an emerging country context. [ABSTRACT FROM AUTHOR]

Purpose Under the traditional franchise value paradigm, competition in banking markets is considered to be risk enhancing because of its tendency to raise interest rates on deposits. Taking a contrarian view, Boyd and De Nicolo (2005) have argued that competition in the loan market can lead to lower interest rates and hence reduce bank risk-taking. Following these contradictory theoretical results, the empirical evidence on the relationship between risk and competition in banking has also been mixed. This paper analyses the competition–stability relationship for the Indian banking sector for the period 1999-2000 to 2012-2013.Design/methodology/approach Banking competition is measured using structural measures of concentration, namely, five-bank concentration ratios and the Herfindahl-Hirschman Index as well as a non-structural measure of competition – the Panzar-Rosse H-Statistic. Panel regression methods are used to estimate the relationships.Findings Our results show that while concentration leads to lower levels of default, market and asset risks, it exacerbates the levels of capital and liquidity risks.Practical implications These results have interesting implications for banking sector policy in emerging economies. For instance, any strategy on entry of new banks has to be carefully coordinated with supervisory efforts and macro-prudential policy to derive the benefits of greater competition in the banking industry.Originality/value This is the first paper that analyses the competition – stability relationship using a large number of alternative measures for the banking sector, an emerging economy. [ABSTRACT FROM AUTHOR]

Purpose: The study aims to overview the different types of internal-led cyber fraud that have gained mainstream attention in recent major-value fraud events involving prominent Indian banks. The authors attempted to identify and classify cyber frauds and its drivers and correlate them for optimal mitigation planning. Design/methodology/approach: The methodology opted for the identification and classification is through a detailed literature review and focus group discussion with risk and vigilance officers and cyber cell experts. The authors assessed the future of cyber fraud in the Indian banking business through the machine learning–based k-nearest neighbor (K-NN) approach and prioritized and predicted the future of cyber fraud. The predicted future revealing dominance of a few specific cyber frauds will help to get an appropriate fraud prevention model, using an associated parties centric (victim and offender) root-cause approach. The study uses correlation analysis and maps frauds with their respective drivers to determine the resource specific effective mitigation plan. Findings: Finally, the paper concludes with a conceptual framework for preventing internal-led cyber fraud within the scope of the study. A cyber fraud mitigation ecosystem will be helpful for policymakers and fraud investigation officers to create a more robust environment for banks through timely and quick detection of cyber frauds and prevention of them. Research limitations/implications: Additionally, the study supports the Reserve Bank of India and the Government of India's launched cyber security initiates and schemes which ensure protection for the banking ecosystem i.e. RBI direct scheme, integrated ombudsman scheme, cyber swachhta kendra (botnet cleaning and malware analysis centre), National Cyber Coordination Centre (NCCC) and Security Monitoring Centre (SMC). Practical implications: Structured and effective internal-led plans for cyber fraud mitigation proposed in this study will conserve banks, employees, regulatory authorities, customers and economic resources, save bank authorities' and policymakers' time and money, and conserve resources. Additionally, this will enhance the reputation of the Indian banking industry and extend its lifespan. Originality/value: The innovative insider-led cyber fraud mitigation approach quickly identifies cyber fraud, prioritizes it, identifies its prominent root causes, map frauds with respective root causes and then suggests strategies to ensure a cost-effective and time-saving bank ecosystem. [ABSTRACT FROM AUTHOR]

Purpose: Given the unique nature of Indian family firms and the recent failure of many business houses (Bhushan Steel Ltd., Hotel Leela Ventures Ltd. etc.) it is important to understand the relationship between the earnings management practices of the family firms and the debt. In this paper an attempt towards this has been made. Design/methodology/approach: This study makes use of an empirical approach to understand the relationship between earnings management and debt in the Indian context. This study was conducted by considering a large sample data of 16,629 family firm years spread across nine years. This study makes use of fixed effects and Generalized Method of Moments (GMM) regressions to test our hypothesis. Findings: First and foremost, this research supports the socioemotional wealth theory. It indicates that maintaining the control of the business is one of the socioemotional factors for the Indian family business and Indian family businesses ladened with debt engage in earnings management to protect their socio emotional wealth (control of the business). Evidence for higher earnings management practices for firms with above average debt has also been documented. Further, the fact that real activity earnings management is the preferred earnings management choice over the accrual-based earnings management as majority of debt is from the banks and financial institutions has also been demonstrated. Finally, the analysis indicates that accrual-based earnings management and real activity earnings management are complementary to each other. However, real activity earnings management can also act as a substitute for the accrual-based earnings management but the reverse is not true. Even among the real activity earnings management, cost-based real activity earnings management was preferred over the revenue-based real activity earnings management as the former is more elusory. Research limitations/implications: This research is limited to the listed family firms of India. Since the family firms around the world are heterogeneous the findings from this research might not be extended to other economies. Practical implications: The study has meaningful insights for policy making and monitoring of the family firms. It also aides the investors in taking investment decisions with respect to family firms in India. Originality/value: The study is unique as it integrates the family firms, debt and various types earnings management. Previous studies have focused mainly on accrual-based earnings management. The study also provides insights on the relationship between earnings management practices and debt covenants at various levels of family holdings. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to empirically evaluate the performance of commercial banks operating in India. Design/methodology/approach: The efficiency of the commercial banks is evaluated using the data envelopment analysis (DEA) approach. We measure the technical, pure technical and scale efficiency of the sampled conventional banks using the input-oriented model. We employed an extended DEA window analysis approach based on a panel sample of 47 banks in the Indian scenario. The period of study is from 2009 to 2018. Findings: The results obtained from CRS and VRS measures envisage that Indian banks have failed to manage their inputs efficiently and convert them into outputs. It implies that Indian banks do not operate at an optimum level. Moreover, the results show that public banks exhibit superior efficiency scores followed by private and foreign banks. Apart from the aggregate sector level, we also investigate the performance of Indian banks at the individual level for in-depth analysis. The individual bank-level analysis reports that the public sector banks (PSBs) are the most efficient followed by foreign banks, whereas, the least efficient are the private banks. Research limitations/implications: The findings of our study have implications for government, financial institutions and policymakers to access the verve and flexibility of the Indian banking system. The government should consider restructuring inefficient banks to enhance overall performance. This can be considered by improvement in managerial efficiency, efficient allocation of scarce resources and appropriate scale of operation. However, the findings of the study should be interpreted in light of the period of study for the banks being operational (as we filter out banks that ceased to exist) in India and empirical methods employed. The results may vary if alternative measures are used. Originality/value: The present paper investigates the efficiency of the Indian banking sector employing the Data Envelopment Window Analysis (DEWA) technique. To the best of our knowledge, the present study is perhaps the first one to employ the DEWA measure on the Indian banking industry to gauge their performance over time. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the study is to explore the association of disclosures for the performance of banks in India. Design/methodology/approach: Panel data analysis (utilising static and dynamic models) is applied on the data of 34 Indian banks (for time-frame 2015–2019) to explore the association of disclosures (as transparency and disclosure index) with the performance of banks (as profitability, risk-taking and technical efficiency (TE)). The regulation, competition and ownership concentration variables are taken as control variables. Findings: None of the banks' performance measures applied in the study is significantly associated with the disclosures. This situation implies that disclosures do not impact the performance of the banks in India. The reason is that disclosures and performance are two different activities that aim at different purposes. Research limitations/implications: This study does not provide output for the association between disclosures and the value of the banks and confines itself to explore the association between disclosures and performance of the banks only. This limitation can be the future scope of the study. Originality/value: There is no other study that solely focuses on exploring the association of disclosures with the performance of the banks. Disclosure has more significant importance in banks because of the inherent nature of opaqueness in banking operations. Therefore, the current study's findings have substantial implications for policymakers, managers and investors of the banks. [ABSTRACT FROM AUTHOR]

Purpose: Technology has revolutionized banking, and "green banking" has been the most recent phenomenon to have caught the financial world's attention. In this paper, the authors look at how personality traits of individuals influence their adoption and continued use of green banking channels. The authors also propose a comprehensive model integrating the "big five" personality traits (conscientiousness, agreeableness, extraversion, openness and neuroticism) into the Technology Acceptance Model (TAM), along with expectation confirmation theory. The integrated proposed model is used in this longitudinal study to predict the continued use of green banking channels once adopted. Design/methodology/approach: The authors collected data during two time periods about 24 weeks apart from 826 green banking channel users from different regions in India. The data were analyzed using Structural Equation Modeling. Findings: The authors found that traits of agreeableness, conscientiousness and extraversion favor an individual adopting green banking channels, while conscientiousness and openness were only associated with its perceived usefulness (PU). Research limitations/implications: The results offer valuable insights for understanding the adoption and use behavior of people regarding green banking channels. This study would help develop effective segmentation strategies for promoting green banking channels. Originality/value: By incorporating the big five, along with TAM and Expectation Confirmation Model (ECM), coupled with "trust" as an additional construct, we believe that our study enlarges the boundaries of Information Technology (IT) theories, especially in the context of green banking channels. This study also contributes to advancing the personality theory by exploring how personality traits significantly relate to adopting and using green banking channels. [ABSTRACT FROM AUTHOR]

Purpose - Using data on Indian banks for 1997-2007, the purpose of this paper is to develop an index of banking fragility and subsequently examine the factors affecting the index. Design/methodology/approach - The author employs basic distributional assumptions to develop the index and subsequently, employs panel data techniques to examine the factors which affect the index. Findings - Based on the statistical properties of the index, banks are classified as exhibiting high, moderate, and low stability. The multivariate regressions indicate an important role for banking industry variables in influencing the index. Practical implications - The paper complements the strand of literature which has been focusing on developing indicators of banking stability and examining the factors affecting them. Originality/value - To the author's knowledge, this is perhaps the first study for an emerging economy and more certainly for India, to examine this issue. [ABSTRACT FROM AUTHOR]

Purpose: The Indian marble and stone industry has got the potential to contribute well to the development of the emerging economy. However, unlike the other Indian industries, stone and marble industries are highly underrated sectors, which may become a critical factor for development. This paper analyses the sustainability factors in supply chain management practices. Design/methodology/approach: A literature review is used to identify the barriers and drivers in sustainable supply chain management practices. Interpretive structural modeling has been used to obtain a hierarchy of barriers and drivers along with driving power and dependence power analysis. Further, MICMAC analysis is used for segregating the barriers and drivers in terms of their impact on sustainability. Findings: The findings of the work of this research are that the attention of society, government, and commercial banks should be more toward the unorganized condition of stone and marble sector. There should be an increase in the commitment of stakeholders to reduce pollution and install safety, by enforcing more relevant laws and regulations and creating the importance of environmental awareness. Originality/value: The main contribution of this research is to identify the barriers and drivers of sustainable supply chain management in a stone and marble industry. The paper proposes a sound mathematical model to prioritize the critical factors for responsible production and consumption of resources from sustainability perspectives of stone industry. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to examine the impact of macroprudential policies (MPPs) on credit growth. Towards this end, the author uses quarterly data on Indian commercial banks for the period 2002:1 to 2012:1 that subsume the imposition of MPPs. Design/methodology/approach – The analysis uses the dynamic panel data (DPD) methodology to test the relevant hypotheses regarding the interlinkage between credit growth, bank ownership and MPPs. The DPD methodology has the advantage of being able to address the endogeneity between credit growth and macroprudential regulation. Findings – The results appear to suggest that MPPs targeted on provisions are relatively more effective in limiting credit expansion. When considered in conjunction with bank ownership, they appear to have much more force in moderating the severity of the credit cycle. Research limitations/implications – The lack of an extensive database on the relevant variables might hinder the robustness of the results. It is possible that MPPs are effective in curbing loan extension to targeted sectors, which cannot be adequately examined using aggregate loan data. Practical implications – The role and usefulness of MPPs in limiting the build-up of risk has been widely discussed in recent times. Judged from that standpoint, the paper contributes to this literature by examining the issue for a leading emerging economy. Originality/value – To the best of the author’s knowledge, this is one of the earliest studies to examine this issue in a systematic manner for India. [ABSTRACT FROM AUTHOR]

Purpose: The problem of differentiation and creating a unique selling proposition is higher in the banking sector, as, any new service or product introduced is very quickly imitated by the competitors. The benefits of advertising have been seen to have long-term effects on the firm's performance and debate is still on whether the expenses of advertising should be amortized or expensed immediately has been the area of concern for many years. The purpose of this paper is to carry out a comparative analysis of advertising effectiveness on private and public sector banks in India. Design/methodology/approach: This study has included 33 listed commercial banks out of 41 listed on S&P BSE 500. Out of 33 banks, 14 banks belong to private sector and 19 banks are public sector banks. Data are extracted for a period of 14 years from 2004 to 2017 from Ace Equity. In total, there are 462 firm-year observations. Interest income, operating income and return on assets are the accounting measures considered in this paper. All the variables are deflated by total assets at the beginning of the period. To assess the effect of advertising on financial measures, distributed lag model is used. Findings: The results of Koyck model suggest that it takes lesser time for private sector banks to see a significant change in interest income and return on assets with a change in advertising expenses whereas in case of operating income, the results achieved are opposite. Originality/value: This study may be useful from accounting point of view to find out whether advertising creates long-term or short-term impact on financial measures. The study would help in determining the number of years for which advertising expenses can be amortized. With the help of these results, it can be said that advertisement expenses can be capitalized and then expensed over coming years. This means, to some extent advertisement has some long-run impact on financial measures considered in the study. In order to achieve more robust results, this study can be performed on different sectors. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to examine the performance implications of board size, composition and frequency of board meetings on the performance of banks.Design/methodology/approach The performance of banks is assessed on various parameters such as return on assets (ROA), Tobin’s Q, non-performing asset ratio (NPA ratio) and the net write-off ratio (NWO ratio). The effects of changes in board size and composition and frequency of meetings on the performance of banks are investigated using feasible generalized least square (FGLS) estimation of panel data covering a time span of five years concerning 40 banks incorporated in India. Frequency of board meetings is taken as a proxy for board activity and involvement. The authors have also tested for endogeneity issues in the model.Findings A curvilinear relationship was found between the board size and performance of banks. The authors have modelled a cubic form of the relationship for Indian banks. The authors’ findings indicate that an increase in board size is associated with better bank performance within both low and high board size ranges. Alternatively, increased board size is negatively associated with bank performance in the intermediate board size range. The study did not find any significant relationship between performance and frequency of board meetings and board composition.Research limitations/implications The behavioural variables reflecting the involvement of the board have not been incorporated in the model to determine the impact of board involvement on the performance of banks owing to the availability of data. It is hoped that this paper will be useful for major regulatory bodies such as the Ministry of Corporate Affairs (MCA), Securities and Exchange Board of India (SEBI), Company Law Board (CLB) and stock exchanges in India and other emerging economies in devising listing norms and other governance-related aspects.Originality/value Non-linear relationships between the board size and performance are not normally prevalent in emerging economies, especially in the banking sector. However, such a relationship exists among the Indian banks. This paper is the first of its kind to identify and address the same. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to investigate the value relevance of segment information for both public and private sector banks in India. In doing so, this paper examines a rapidly developing economy and perhaps its most critical sector during this period of strong economic growth.Design/methodology/approach In this study uses the simplified Ohlson model, for a sample of 136 private sector and public sector banks for the period 2007-2010 in India.Findings The paper finds that public sector banks have higher share prices, higher earnings and more equity compared with private sector banks. Segment earnings data is highly value relevant for both sectors; however, segment equity data is only marginally value relevant for Indian banks. The number of segments is also value relevant and associated with higher share prices.Originality/value The results of this study contribute additional evidence to the literature on segment reporting by studying the effect of adoption of segment reporting in an emerging market. Findings from the paper are particularly relevant as India is currently in the process of changing its segment reporting requirements and moving to an IFRS-based segment standard. [ABSTRACT FROM AUTHOR]

Purpose – Estimation of default and asset correlation is crucial for banks to manage and measure portfolio credit risk. The purpose of this paper is to find empirical relationship between the default and asset correlation with default probability, to understand the effect of systematic risk. Design/methodology/approach – The authors have estimated single default and implicit asset correlations for banks and corporates in India and compare it with global scenario. This paper deduces a simple methodology to estimate the default correlations from the variance of temporal default rates. Next, the asset correlations have been estimated analytically by decomposition of variance equation in Merton's one factor risk model following approaches of Gordy and of Bluhm and Overbeck. Findings – The authors empirically find a negative relationship between asset correlation and the probability of default using Moody's global corporate data that support Basel II internal ratings-based (IRB) correlation prescription. However, they do not find any smooth relationship between the probability of default (PD) and asset correlation for Indian corporate. The magnitude of correlation estimates based on a large bank's internal rating-wise default rates are much lower than what is prescribed by the Basel committee. Thus, the standardized correlation figures as assumed by the Basel Committee on Banking Supervision need to be properly calibrated by the local regulators before prescribing their banks to calculate IRB risk weighted assets. Originality/value – These correlation estimates will help the regulators, insurance firms and banks to understand the linkage between counterparty default risks with the systematic factors. The findings of this paper could be used further in estimating portfolio economic capital for large corporate exposures of banks and insurance companies. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to explore the factors which are crucial in determining the extent of financial inclusion in geographically remote areas. The study also aims to provide suggestive measures for banks to tap unexplored markets. Design/methodology/approach – Primary data were collected via structured questionnaire from 411 households from the states of Assam and Meghalaya in north-east India. Factors significantly contributing to inclusion were identified using a logistic regression model. Findings – Level of financial inclusion in north-east India remains very low. Income, financial information from various channels and awareness of self help groups (SHGs), and education are influential factors leading to inclusion. Nearness to post office banks increases the likelihood of inclusion. Factors like area terrain and receipt of government benefit individually do not facilitate inclusion. However, recipients of government benefits in plain areas show increased level of inclusion. Research limitations/implications – The study was restricted to north-east India, which limits the generalizability of the findings. Practical implications – Banks and policy makers should work in close co-ordination to spread financial information as those efforts are seen to directly impact inclusion, thereby providing new business opportunities to banks. Originality/value – Using primary data, this study explores the potential predictors of financial inclusion in geographically remote areas. The study is unique in capturing the conditional relationships among variables which are bound to exist in real life scenarios. The findings of the paper are valuable for banks and policy makers. [ABSTRACT FROM AUTHOR]

Purpose – As the suppliers of any organization are considered as the strategic partners and taken as the integral part of the supply chain network, hence it is very crucial decision to select the suppliers in order to get the competitive edge. Whenever, any organization select its suppliers then organization evaluates every supplier with respect to certain criteria, which are already listed in the organization’s policies. Since supplier selection is based on the evaluation of various attributes of each alternative; therefore this problem is a multi-attribute decision-making (MADM) problem. The purpose of this paper is to propose a model for selecting the best supplier. Design/methodology/approach – This paper reports the implementation of grey theory to choose the appropriate supplier with uncertain information. Grey values have been used to give the ratings and weightage to various criteria which are being used to evaluate the different supplier alternatives. And finally the grey possibility degree has been calculated to rate the various alternatives. Findings – This paper proposed a MADM model based on grey theory to select the optimal supplier and finally, the proposed model has been applied to select the best supplier for “optimizing digital banking” in the Indian context. Research limitations/implications – The selection criteria selected here through literature review may not fit the whole industry and moreover this paper can be extended into the field where multiple-supplier selection is required, like in manufacturing sector where the authors cannot rely always on single supplier. So, in that case the authors need to pick more than one best alternatives. Practical implications – The grey theory approach can be applied almost all the services industries, where the exact information about the suppliers in quantitative terms is very difficult to find. So the authors can use the grey numbers to rate the suppliers. Social implications – Since, the coming generation is more dependent on the internet banking, so it becomes very much necessary for the banking sector to update the existing system. Due to lack in technical skills, outsourcing the information technology and software development is the best option. Hence, Grey theory based model can be used in selecting the best supplier under uncertain information. Originality/value – Very few studies have been done in India using grey theory approach for supplier selection and moreover, to the best knowledge of the authors’ this is the first study which employs grey theory for selecting the best supplier in banking industry. Moreover the digital banking system is the future of banking industry, so every player should provide the digital banking structure in order to survive in the market. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to examine the interrelationships among default risk, capital and efficiency of the Indian banking system over 1990-2011. This study also took into account the impact of ownership on these interrelationships Design/methodology/approach – This paper employed Data Envelopment Analysis (DEA) Windows Analysis to estimate efficiency levels and trends of individual banks. This paper then used a model of seemingly unrelated regression equations (SURE) to examine the interrelationships among default risk, capital and efficiency. Findings – This study found a two-way negative association between efficiency and default risk, and between capital ratio and default risk. However, this study found a two-way positive relationship between capital ratio and only profit efficiency. Public banks behaved differently from private banks regarding the association between capital and efficiency. Moreover, public banks had greater probability of default risk, lower capital ratio but higher efficiency level than private banks. Further, default risk, capital ratio and efficiency of the Indian banking system increased over time, but the two formers were driven by public banks while the latter was driven by private banks. Practical implications – The findings of this study appear to favour capital ratio as an efficient tool to improve efficiency and reduce default risk of the Indian banking system. Originality/value – This paper is the first investigating the interrelationships between bank risk, capital and efficiency of the Indian banking system, where bank risk is measured by Z-score value and efficiency is captured by cost, revenue and profit efficiencies, and then considering the impact of agency issues on these interrelationships. [ABSTRACT FROM AUTHOR]

Purpose – This paper is based on a keynote presentation at the 2nd Pan IIM World Management Conference hosted by the Indian Institute of Management (IIM) in Kozhikode (IIMK) in November 2014. Design/methodology/approach – This paper draws lessons from the “Global” Financial Crisis for the governance, regulation and structural reform of banking, as well as monetary policy in a globalising financial system. Lessons are also drawn from the Eurozone Crisis, the Asian Financial Crisis and China. Findings – This paper concludes that the appropriate extent of state ownership of banks and the process for reducing it, while also recapitalising banks, along with the development of capital markets, should be an integral part of India’s wider structural reform programme. Originality/value – The paper provides lessons for India with regard to banking and economic growth, financial sector development and addressing market failures in small- and medium-sized enterprises and infrastructural finance. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to examine the factors that influence the variability of loan losses (termed as non-performing advances or NPA in India) of Indian banks in the public sector during the period of five years from 2001 to 2005. Design/methodology/approach -- The analysis is based on a panel approach, which considers both spatial and time dimensions of observations. Panel regression was used to explore the impact of different bank-specific factors on NPAs of 27 public sector banks (PSBs). Standard tests were used to find out suitability of different models of panel data analysis. Eight bank-specific factors were identified for analysis on the basis of review of extant literature. Findings -- Certain bank-specific factors, in particular, net interest margin and capital adequacy ratio exhibit negative and significant impact on gross non-performing advances (GNPA) ratio of Indian PSBs. The results also suggest that relative quantum of sensitive sector (SEN) (comprised of commercial real estate, commodity and capital market) advances has a positive relationship with NPA ratio, and such a relationship is statistically significant. Research limitations/implications -- The sample is restricted to India and may not be reflective of other countries. The study considers bank-level factors, and there are some macro factors (e.g. gross domestic product, interest rate and inflation rate) which could have explained the variability of GNPA ratio. Practical implications -- Provisioning against loan losses is a major issue for stability of the banking system. Identification of appropriate causes of variability of such loan losses is important for managing credit portfolio of a bank. A positive and significant relationship between SEN advances and NPA calls for a more cautionary approach toward lending to those sectors. Originality/value -- This paper is believed to be the first attempt to empirically examine the role of bank-specific factors. This study attempts to enrich empirical research in the field and provides an insight into the role of various bank-specific factors on loan losses in the context of Indian PSBs. The study provides contrary evidence regarding the role of priority sector advances on a GNPA ratio. [ABSTRACT FROM AUTHOR]

Purpose This paper aims to explore the awareness of terminology related to intellectual capital (IC) among executives of Indian banks and the sources in which they mostly find IC-related terminology. The paper also explores relative and specific contributions of each selected source of information in creating IC awareness among bank executives in India and determines difference among the executives from the public and private sector.Design/methodology/approach This research paper follows a survey-based approach to capture the perceptions of Indian bank managers working middle and top management across different banks. Regression analysis and ANOVA were applied to data from 166 responses.Findings The study finds that IC awareness among Indian banking executives is reasonably high and is equally spread across the three sub-categories of capital (external capital, human capital and internal capital), though the relative awareness of external capital is on the higher side. However, the sources of awareness of IC terminology differ among executives from the public- and private-sector banks.Research limitations/implications The sample was limited to middle and top managers in the Indian banking industry and suffers from the usual limitations of survey-based research such as the design of the survey instrument and the personal biases of the respondents. Some limitations may also have arisen because of the definitions of IC elements adopted by this study.Originality/value This research adds a new dimension to the IC research by exploring the practical application and awareness of IC that deviates from traditional annual report-based disclosure and valuation studies. No existing literature has examined the survey-based awareness study, particularly on the banking industry. This paper provides a foundation for future studies that examine the operational awareness and application of IC in the service industries. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to present a holistic approach for measuring overall bank efficiency and its decomposition in intermediation and operating efficiencies.Design/methodology/approach Recently developed two-stage network data envelopment analysis model by Liang et al. (2008) has been used for obtaining intermediation and operational efficiencies along with overall bank efficiency. The bootstrapped truncated regression algorithm as proposed by Simar and Wilson (2007) has been employed to explore the influential determinants of intermediation and operating efficiencies.Findings The empirical results reveal that the operating inefficiency is the dominant source of overall bank inefficiency in Indian banking sector. Another interesting finding is that public sector banks are more efficient than private banks in the intermediation stage of production process, while private banks are more efficient in the operating stage of production process. Finally, the results of bootstrapped truncated regression show that variations in intermediation efficiency are explained by bank size, liquidity position, directed lending and intermediation cost, while inter-bank differences in operating efficiency are influenced by profitability and income diversification.Practical implications The most significant practical implication that has been derived from the research findings is that at the industry level, overall efficiency enhancement needs improvement both in terms of resource-utilization and income-generating abilities of the banks. However, the relatively easy way to achieve higher bank efficiency is to improve the efficiency of banks in generating incomes from interest and fee-based sources.Originality/value This paper is the first to provide a comprehensive assessment of performance of Indian banks by examining the efficiency of individual banks considering both the intermediation and operating approaches simultaneously. [ABSTRACT FROM AUTHOR]

Purpose In the present competitive scenario in the Indian banking industry, service quality has become one of the most important facets of interest to academic researchers. The purpose of this paper is to determine the dimensions of perceived service quality and investigate their impact on customer satisfaction in the Indian banking context, with special reference to selected public sector banks in India.Design/methodology/approach On the basis of the empirical study, the authors validate a measurement model using structural equation modeling for investigating the impact of perceived service quality dimensions on customer satisfaction. The study sample consists of 480 respondents in the National Capital Region (NCR) of India; the data were collected through a structured questionnaire utilizing a seven-point Likert scale while implementing a purposive sampling technique.Findings The perceived service quality dimensions identified were tangibility, reliability, assurance, responsiveness, empathy, and image. The empirical findings revealed that “responsiveness” was found to be the most significant predictor of customer satisfaction. On the other hand, “image” (corporate image) has a positive but the least significant relationship with customer satisfaction followed by all other constructs. The exception is “reliability,” which is insignificantly related to customer satisfaction in Indian public sector banks.Research limitations/implications The study cannot be generalized in the context of Indian banking sectors, as it only focused on the public sector. The findings of this study suggest that the six dimensions of perceived service quality model are a suitable instrument for evaluating bank service quality for public banks in India. Therefore, bank managers can use this model to assess the bank service quality in the context of Indian public sector banks.Originality/value There is dearth of research focusing on corporate image as a dimension of perceived service quality and its effect on customer satisfaction in the Indian banking context. Furthermore, similar studies were rarely found in the Indian context, especially within the public banking sector. Hence, this paper attempts to accomplish the research gap by empirically testing the satisfaction level of a large sample of the population in NCR toward six dimensions of perceived service quality rendered by selected public sector banks in India. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to analyze the effect of bank-related variables and corporate governance-related variables on the productivity and profitability of public and private sector banks in India.Design/methodology/approach The Malmquist productivity index is applied to determine the productivity of different banks. Further, return on average assets is used as profitability of banks. The regression analysis is further used to assess the effect of different bank-related and governance-related variables on performance of banks.Findings Nearly all the bank-specific variables explain the productivity and profitability of banks but a weak relationship is observed between individual governance variables and performance variables. Two governance variables, i.e. board meetings and remuneration explicate the profitability of the public sector banks and only duality explains the profitability of the private sector banks. No significance is found between productivity and governance variables.Originality/value The study addresses the embryonic issue of corporate governance in the banking sector. The uniqueness of the paper lies in that no study has evaluated the effect of these variables on productivity and profitability of banks simultaneously. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to measure the intellectual capital performance of Indian banks and established a relationship between intellectual capital and return on assets (ROA). The paper also compared the intellectual capital performance of public sector and private sector banks. Design/methodology/approach – This study is based on secondary data from the top 20 Indian banks. Ten banks were selected from each of the public and private sectors on the basis of paid-up equity capital. The analysis was made using the value added intellectual coefficient, the coefficient of variation, exponential growth rates, trend analysis, Yule’s coefficient, the coefficient of correlation, the F-test and the t-test. Findings – The study revealed that private sectors have performed relatively better regarding the creation of total information coefficient (IC). However, the ROA was still below the international benchmark of > 1 percent. The major cause of the lower IC and the reduced ROA is disproportionate to the increase in capital employed and escalating non-performing assets in the Indian banking sector. Practical implications – The study focussed on managers and identified the causes of lower performance. It proposed numerous strategies to improve the aggregate score of IC, which is closely related to bank profitability. Originality/value – This is the first study to make a comparative analysis of intellectual capital performance in public and private sector banks in India and in addition to the traditional style of measuring sectoral performance. Further, the study employed new statistical tools, such as Yule’s coefficient of association, to establish the association between performance variables. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to analyze the preparations carried out by the Indian banking industry for the implementation of the International Financial Reporting Standards on and after 1 April 2011. Design/methodology/approach – The paper is based upon the critical analysis of the financial statements of the Indian banking industry and the relevant provisions of IFRS and other relevant laws applicable for the Indian banking industry. Findings – The main finding of this paper is that the Indian banking industry is preparing according to the target for convergence from 1 April 2011, but amendments in the various statutory laws of India are yet to be implemented/approved by the government. Research limitations/implications – This paper covers only the Indian banking industry and excludes all other industries in India. Originality/value – This paper shows the areas in which the Indian banking industry is required to focus before and after the implementation of IFRS, and their consequences on the financial statements of the bank. [ABSTRACT FROM AUTHOR]

Purpose: While several facets of financial misconduct have been explored, one aspect which has largely bypassed the attention of researchers is the factors affecting such misconduct behavior in banks. To investigate this in detail, this paper aims to use disaggregated data on Indian banks for an extended period to understand the factors driving such behavior. Design/methodology/approach: Given the longitudinal nature of the data, the author uses fixed effects regression methodology which enables us to control for unobserved characteristics that might affect the dependent variable. Findings: The analysis indicates that both bank- and board-specific factors are important in driving financial misconduct, although their importance differs across ownership. In particular, while size and capital are relevant for public banks, liquidity is more of a concern for private banks as compared with their public counterparts. In addition, the relevance of bank boards is important only in case of private banks. These results hold after controlling for the structure of the banking industry and the macroeconomic environment. Originality/value: To the best of the author's knowledge, this is one of the earliest studies for India to carefully examine the interface between financial misconduct and bank behavior in a systematic manner. [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]

Purpose – The purpose of this paper is to examine the trends of cost efficiency (CE) of Indian banks in response to financial deregulation programme launched in early 1990s. More specifically, the findings of this paper offer empirical testing of the basic underlined hypothesis that the CE of banks will rise in the more liberal and competitive environment. Design/methodology/approach – The study employs input-oriented data envelopment analysis (DEA) models that incorporate the quasi-fixed inputs to compute the cost, technical, and allocative efficiency scores for individual banks. The unbalanced panel data spanning from the financial year 1992-1993 to 2007-2008 are used for obtaining efficiency measures. In addition, the panel data Tobit model has been applied to investigate the bank-specific factors explaining variations in the CE. Findings – The empirical findings pertaining to the trends of efficiency measures suggest that: first, deregulation programme has had a positive impact on the CE of Indian banks, and the observed increase in CE is entirely due to improvements in technical efficiency (TE); second, the ranking of ownership groups provides that public sector banks are more cost efficient along with the foreign than private banks; and third, there is a strong presence of global advantage hypothesis in the Indian banking industry. The results of post-DEA analysis reveal that size and exposure to off-balance sheet activities are the key determinants of CE. The results also support the existence of bad luck or bad management hypothesis in Indian banking industry. Practical implications – The practical implication of the research findings is that the financial deregulation programme seems to be successful in achieving the CE gains in the Indian banking industry. This explicitly signals that the cautious approach of banking reforms adopted by Indian policy makers has started bearing fruit in terms of the creation of an efficient banking system, which is immune to any sort of financial crisis, and resilient to both internal and external shocks. Originality/value – The present study offers new evidence on the time-series properties of cost, allocative, and TEs of Indian banks. The DEA models used in this study explicitly incorporate the equity as a quasi-fixed input, which accounts for “risk” in the bank efficiency measurement. [ABSTRACT FROM AUTHOR]

Purpose – An employee’s satisfaction with the work context may affect her/his perception of the organization and may hence be a predictor of her/his intention to leave. The purpose of this paper is to explore the possible mediating role of context satisfaction between employees’ perception of job characteristics and their turnover intention and rests on the Job Characteristics Model (JCM). Design/methodology/approach – Hierarchical regression analysis was used to test the moderation hypothesis on sample data of 214 employees of 19 public sector banks in India. The population comprised both junior and middle management grade employees as these are expected to succeed retiring middle and senior management employees. Findings – Findings suggest that in addition to enriched jobs, context satisfaction is critical to establish a positive environment to lessen turnover intention of employees. This highlights the need for a positive and supportive work context to maximize the benefits of jobs with positive characteristics. Originality/value – The study is important for academicians and practitioners alike as it is evidence to the underlying process of how perception towards job characteristics together with work context as a less researched construct of JCM may influence intention to quit. The findings find relevance in the Indian banking sector, where retaining talent is a major challenge. [ABSTRACT FROM AUTHOR]

Purpose: The present study assesses the commercial bank profit efficiency and its relationship to banking sector competition in a rapidly growing emerging economy, India from 2009 to 2019 using stochastic frontier analysis (SFA). Design/methodology/approach: Lerner indices, conventional and efficiency-adjusted, quantify competition. Two SFA models are employed to calculate alternative profit efficiency (inefficiency) scores: the two-step time-decay approach proposed by Battese and Coelli (1992) and the recently developed single-step pairwise difference estimator (PDE) by Belotti and Ilardi (2018). In the first step of the BC92 framework, profit inefficiency is calculated, and in the second step, Tobit and Fractional Regression Model (FRM) are utilized to evaluate profit inefficiency correlates. PDE concurrently solves the frontier and inefficiency equations using the maximum likelihood process. Findings: The results suggest that foreign banks are less profit efficient than domestic equivalents, supporting the "home-field advantage" hypothesis in India. Further, increasing competition drives bank managers to make riskier lending and investment choices, decreasing bank profit efficiency. However, this effect varies depending on bank ownership and size. Originality/value: Literature on the competition bank efficiency link is conspicuously scant, with a focus on technical and cost efficiency. Less is known regarding the influence of competition on bank profit efficiency. The article is one of the first to examine commercial bank profit efficiency and its relationship to banking sector competition. Additionally, the study work represents one of the first applications of the FRM presented by Papke and Wooldridge (1996) and the PDE provided by Belotti and Ilardi (2018). [ABSTRACT FROM AUTHOR]

Purpose: This study investigates the effect of intellectual capital (IC) and its components on the technical efficiency of Indian commercial banks after controlling the influence of bank-specific and macroeconomic variables. Design/methodology/approach: The study selects a sample of 37 listed Indian commercial banks from 2005 to 2019 and uses the two-step data envelopment analysis (DEA) approach. Banks' technical efficiency scores are first estimated, while the relationship between IC and technical efficiency is examined in the second stage using the panel data Tobit model. Findings: This study's findings suggest a fluctuating trend in the technical efficiency of Indian banks. Notably, from 2015 onwards, a declining technical efficiency trend is observed for all banks. However, private-sector banks outperform public-sector banks in terms of technical efficiency. This study's regression analysis indicates a positive relationship between IC and banks' technical efficiency scores. Further, by decomposing IC into its components like human capital, structural capital and capital employed, the study's findings show that human capital and structural capital enhance banks' technical efficiency. Notably, capital employed reduces technical efficiency. Moreover, bank size, diversification, capitalization, net interest margin and the country's growth rate significantly drive Indian banks' efficiency. In contrast, their operating cost ratio and the country's inflation negatively influence the same. Originality/value: This study makes a novel endeavor to examine the IC and bank's technical efficiency nexus in the Indian context, encompassing a period of landmark banking reforms. [ABSTRACT FROM AUTHOR]

Purpose - This paper aims to examine the association between regulatory capital and risk of Indian commercial banks and the impacts of other relevant variables on them. Design/methodology/approach - The study is based on a secondary data set on Indian commercial banks collected from "Capitaline Plus"corporate database and annual reports of the respective banks. Total 41 major Indian banks (21 public and 20 private sector banks) are considered in this study. Here absolute values of capital and risk are used as dependent variables along with some relevant bank specific explanatory variables in a system of a two-equation model. Based on the nature of interrelationship and identifiability of the equations, three-stage least squares (3SLS) technique is used to estimate the relationship. Findings - Risk and capital of Indian commercial banks are inversely associated. The influence of profitability on both capital and risk is significantly positive. Moreover, human capital efficiency is negatively associated with the undertaking of risk by the banks. In this respect, Indian private sector banks are found to be more efficient in utilizing human capital for reducing credit risk. Originality/value - It is the first comparative study in India examining the relationship between capital and risk of Indian public and private sector commercial banks covering both Basel I and II periods. Further, the role of human resource in managing risk is considered as a relevant variable in this study. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to extract and validate the dimensions of service quality in retail banking services in India by adopting an integrated and hierarchical perspective of service quality determinants. Design/methodology/approach – The paper empirically validates a parsimonious (multi-dimensional and multi-level) model of service quality in retail banking services in India. The analysis was conducted using structural equation modeling. A hypothesized second-order model was tested and compared with a first-order model of service quality. The dimensions were extracted through exploratory factor analysis and validated through confirmatory factor analysis. Findings – The second-order service quality model was accepted based on parsimony as it consisted of five primary dimensions: Service delivery (describing the efficiency with which the service is provided), tangibles (the quality of physical service environment), reliability (the promise of right service being provided), core service (the attributes and features of the service product) and competence (the capability of employees and systems for providing the service). The second-order model enhances the understanding of the structure of service quality for retail banking services in India. The most important dimension was tangibles, especially the physical environment which facilitates efficient delivery of service. Research limitations/implications – The research provides support for a multi-dimensional second-order model of service quality in retail banking service in India. The results show that customers form perceptions of overall service quality which are reflected by five primary dimensions. The primary dimension of tangibles is the most influential. Practical implications – Organizations need to measure and manage overall service quality perceptions to build trust and reinforce loyalty intentions among their customers. Banks need to adopt a multi-level approach to managing service quality perceptions, i.e. both at the dimensional level and organizational level. Social implications – This study would contribute to the enhancement of service quality outcomes in retail banking services in India which has a crucial role in the economic development. Originality/value – The study proposes and validates a parsimonious and hierarchical model of service quality in the context of retail banking in Indian cultural context. Thus this research provides support to existing knowledge of service quality measurement and management and extends the understanding of its structure by validating the multi-level model in an emerging market context. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to analyze the various antecedent beliefs predicting customers' attitudes toward, and adoption of, self-service technologies (SSTs) available in the banking industry. Design/methodology/approach -- A descriptive research design with survey approach is used to develop and test a conceptual model of adoption for all three self-service banking technologies (SSBTs). Findings -- The results of the comparative analysis showed that antecedent beliefs affecting adopters' attitude vary across different SSBTs. It extends and tests the technology acceptance model (TAM) by including two additional antecedents from the theories of adoption behavior. Research limitations/implications -- All three SSBTs included in the paper are from the banking industry, which limits the generalizability of the findings to other industries. Many other limitations were also reported. Practical implications -- The findings reveal why and how customers decide to adopt different SSBTs and why a few SSBTs are more widely accepted than others. The practicality of the findings guides managers and designers of technological interfaces. Social implications -- People will also benefit from the effective implementation of SSTs. Originality/value -- This study stands out as one of the early studies to empirically examine the antecedents-attitude-intention relationship across different SSBTs available in Indian banking industry. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of the study is to develop, measure and empirically validate marketing capabilities (MARKCAPB) scale in banking sector. Design/methodology/approach -- Data are collected from a branch manager and three next senior managers of 144 branches of 21 public and 7 private banks operating in Jammu city, North India. Findings -- The study finds that marketing capabilities are of multi-dimensional scale, comprising three dimensions -- outside-in, inside-out and spanning. Further, the study results demonstrate that all three dimensions are significantly related to marketing capabilities; with outside-in capabilities to be most strongly associated with marketing capabilities development followed by inside-out and spanning dimensions. Research limitations/implications -- The study focused on only operational perspective of marketing capabilities to develop a reliable and valid measurement scale. Hence, developing marketing capabilities scale from remaining three perspectives -- intellectual capital, marketing mix and competition would prove to be an interesting line of future research. Second, as marketing capabilities scale is developed and tested in banks, that too, in a single city of a country (India), it becomes important to examine whether the same scale can be applied to different sectors and countries. Moreover, future research could be carried on at identifying various antecedents that facilitate the development of marketing capabilities. Originality/value -- This is the first study of this type that contributes to the development of multi-dimensional scale of marketing capabilities in banking sector in Indian context. The study provides banks' managers with the deeper understanding of how to develop and establish marketing capabilities in an organisation. Besides, it also put light on the significant role of outside-in, inside-out and spanning capabilities that facilitate the managers in enhancing financial performance by focusing on varied sub dimensions such as relationship, regularity, communication (outside-in), Web technology and employee bonding (inside-out), advertising, pricing and product/service skills (spanning). Paper type Research paper [ABSTRACT FROM AUTHOR]

Purpose – The purposes of this paper is to first explore, and describe positive discretionary risky-service behaviour (DRSB) of customer-contact service providers in relational context and second to model the antecedents of such actions. Design/methodology/approach – Employed an exploratory qualitative approach and purposive sampling. The authors gather data from field interview of 35 relationship managers in private and public banks in India. Grounded theory method using analytic induction approach was employed. Findings – Existing studies and field interviews are used to forward the notion of “DRS behaviour” denoting employee service behaviour that is discretionary as it is work beyond what could reasonably be expected from an employee's job role and risky in a sense that it is outside the specific rules and processes incorporated in the formal service process document. Data reveal the existence of DRS behaviour in banks. A definition of DRS behaviour is forwarded and a range of antecedents proposed. Research limitations/implications – To explore the generalizability of results replications among bank employees (relationship managers) in other countries (with more regulatory banking environments) required. While the exploratory data suggest the general antecedents of DRS, the specific propositions have not been tested. Practical implications – The paper includes implications for the management and advancement of employee-customer relationship such as employee's traits, reward structure, and system for monitoring employee-customer relationship strength. Originality/value – The main contribution of the study is relationship antecedent, which may be taken as a starting point for relationship advancement research. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to explore whether perceptions of distributive, procedural and interactional justice are related to employee engagement, as an extension of the antecedents-consequences model of Saks (2006), and to examine the possibility of inter-relationships between these three dimensions of justice. Design/methodology/approach – A survey of 210 employees of public sector banks in India covered measures of job and organization engagement (OE) proposed by Saks (2006) and the scale on distributive, procedural and interactional justice developed by Niehoff and Moorman (1993). The relationships between justice perceptions and engagement were analysed using correlations and hierarchical regression analysis. Findings – Results show that distributive, procedural and interactional are inter-related with each other. Further, distributive and interactional justice take precedence over procedural justice in determining job engagement, while distributive justice plays the most important role in determining OE, followed by procedural and interactional justice. Practical implications – By highlighting the inter-relationships among the three dimensions of justice, this study offers useful insights into the underlying processes through which job and OE can be improved through these inter-relationships. Findings also highlight the application of concepts like relative deprivation in Indian public sector banks to increase the engagement levels of their employees. Originality/value – This paper adds to the very small number of studies that have investigated the role of interactional justice in enhancing job and OEs. It has also established inter-relationships between the three dimensions of organizational justice and their individual roles in determining job and OEs. [ABSTRACT FROM AUTHOR]

Purpose – Asset liability management is a multi-dimensional set of activities. Against this backdrop, the purpose of this paper is to build a goal programming model for optimally determining the asset allocation and liability composition for Indian Banks. Design/methodology/approach – The conceptual model framework has been developed and then tested for four banks that typically represent the Indian banking sector. Published balance sheet data were used for the model that span over 1995-2009. The veracity of the model has been tested in terms of its ability to project the optimum asset allocation and liability composition for the year 2010. Findings – The model has been able to generate the optimum asset and liability mix that meets the goals set on the key drivers. The solution provided is realistic and compatible with the actual figures. Sensitivity analysis including current and savings account and interest rate changes has been successfully performed to study impact they cause on profitability. Research limitations/implications – The model provides an overall approach to asset allocation and liability composition based on past data reflecting the preferences and priorities of the banks with regard to their outlook on setting targets. This may change. The variables like return and risk are stochastic in nature. Practical implications – The model demonstrated in this paper would be useful to the policy makers in any bank for decision support and planning in view of its ability to incorporate a large number of constraints. Changes in profit could be instantaneously captured through sensitivity analysis. Originality/value – The goal programming model used here is invariant to the type of bank and year of consideration. [ABSTRACT FROM AUTHOR]