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Banking reforms were introduced in India on the recommendations of Narsimham Committee I, as a consequent to which new banks were allowed to enter in the private sector of Indian banking industry to infuse competition and efficiency for incumbents. Results were as expected but unfortunately, after ten-fifteen years of banking reforms, global financial recession that took place in 2007 wrecked the world economy. However, Indian economy was believed to remain unimpacted of this crisis because of sound policy framework. Opposite to this, in one of the last studies of ours on NPAs, it was observed that all of the sudden, NPAs started rising again for all the four major banking segments namely, SBI group, nationalized banks, old private banks and new private banks significantly after financial crisis and positive impact of banking reforms was entirely wiped off. This motivated us to undertake this work to examine the impact of financial recession in terms of three performance variables that are, operating profits, net profits and spread as well with the help of a three-fold exercise for the above stated four banking segments for the period ranging between 1995-96 to 2009-10 in the light of S-C-P paradigm. The results of the study indicate that financial recession has not significantly impacted any of the banking segments in terms of selected variables excepting volatility in profitability has come down in case of PSBs. [ABSTRACT FROM AUTHOR]

As a sequel to an earlier paper, this paper considers the growth patterns of SDP (State Domestic Product) amongst Special and non-Special States. Using semi-log growth equations and a Convergence Index, the paper demonstrates that the state GDP of non-Special States has grown at 13.86% per annum while GDP of Special States amounts to 14.20% (ACGR). The Special States have converged with non-Special States at the rate of 0.29% per annum. However, the pattern of convergence was prominent during UPA1 and UPA2 while during NDA1 and NDA2, Special states have receded from Non-Special States. Special States grew faster during NDA 2 regime (2014 onwards). Thus the conclusion is that Special status is justified, especially during the recent NDA regime. The growth rate of former J&K State has been reasonably high, irrespective of whether it was NDA or UPA regime. This counters the argument of instability in J&K. During NDA2 former J&K States' growth was over 20% per annum for the period 2014-2016!!. [ABSTRACT FROM AUTHOR]

In this paper, the concept of life insurance as distinguishable from other financial assets and investments is clearly differentiated. The objective is to study Market Microstructure (MM) pertaining to the Indian Life Insurance market which has not been studied so far. The paper provides a framework of MM and delves deeper into the origin; market participants, market form and organizational structure, pricing, legal framework, role of information, impact of technology, recent market trends and future prospects. Using semi-log regression equation, growth rates of new life insurance business, total premium and channel-wise businesses are estimated to analyze the market trends. The current penetration and density are found to be low and thus the Indian life insurance market could at the best be described as an emerging market and hence the market still has huge potential for growth. We have therefore analyzed the MM of Indian life insurance market which is not found in the strands of literature on economic theory, finance theory and life insurance literature. It becomes evident that we need a different approach while studying life insurance as opposed to stock markets. [ABSTRACT FROM AUTHOR]

The economic basis of globalization lies in multilateralism. The intended impact of globalization is global allocative efficiency because Foreign Direct Investment (FDI) spearheads the dispersal of capital across the globe. So, it can be said about FDI that multilateralism implies importing capital from a variety of sources as may be most efficient rather than restricting them to a bilateral basis. This forms the motivation of this paper. This paper has used Principal Component Analysis (PCA) and panel regression approaches. The study builds up a methodology for measuring and testing the determinants of the patterns of inward FDI of developed countries. These determinants are a large set of developmental variables. The study evolves a set of six composite indices by using PCA, namely, human resource, infrastructure, labor, market, trade openness and resource. The annual growth rate is 11% while that of the top 10 developed countries of the world experience a significantly lower growth rate, i.e., 3.4% (= 0.111 - 0.077). Infrastructure is highly elastic at 1.72. In the case of the top 10 countries, the determinants of inward FDI that are significant and positive are labor, market and resource. [ABSTRACT FROM AUTHOR]

In this paper, we examine the Long-run performance of initial public offerings (IPOs). The data has been taken for 31 IPOs from the year 2000 to 2003. We have used Logistic Regression Model through SPSS Version 16 to test for the relationship between long run performance of IPOs and short run performance variables of the company. The analysis shows that the long run variables have no relationship with short-run variables or else have negative relationship. With some of the variables it has positive relationship. It shows anomaly. The companies having listing gain have negative current ratio, debt equity ratio and return on net worth and the companies having short-run gain has negative current ratio and debt equity ratio. The theory supports the view that for IPO markets to be efficient there should be low listing gain, moderate short-run gain and high long-run gain. Only then there will be long term development of IPO market. But the actual situation is opposite. The companies have listing gain, short-run gain but they are not able to give long run gain. [ABSTRACT FROM AUTHOR]

Using an appropriate theoretical framework and econometric methodology, the study seeks to measure and model competition in private banking industry in India in an attempt to analyze the process of market dynamics in the industry. The changing scenario of private banking consequent to deregulation is the motivation behind the study. It uses the concept of competition proposed by Stigler (1961) and measures it by Bodenhorn's (1990) measure of mobility. The study provides a critique of the mechanism of inducing competition, which is implicit in the Narasimham Committee (1991). It then provides the theoretical background of an alternative mechanism based on Structure- Conduct-Performance (S-C-P) paradigm, which incorporates basic conditions and strategic groups, apart from including entry, economies of scale, product differentiation and price-cost margin. One basic contention of the study is that competition goes beyond 'conduct' and encompasses all the four components of S-C-P paradigm: basic conditions, structure, conduct and performance. Accordingly, a three-equation simultaneous equation model is used to ultimately estimate the equation of competition through Tobit technique. The result demonstrates that variables related to basic conditions, structure, and conduct and performance influence competition. The study has found evidence against the simplistic relationship between concentration and competition, which remained implicit in the literature. The study also developed a methodology to arrive at market form from an analysis of three aspects of a market and concludes that private banking industry in India is characterized by monopolistic competition. [ABSTRACT FROM AUTHOR]

Extant studies treat the impact of entry on concentration, market structure and competition rather mechanically; with some even going further to naively identify concentration as an indicator of competition. This paper critically examines these contentions by studying the trends and determinants of concentration with a view to gaining an insight into the process of competition. The deregulation of domestic private banking industry in India, since the early 1990s, provides an opportunity for such a study. This paper is the first of its kind to identify a distinct pattern of change in the concentration ratio and explains its determinants in terms of a cubic form equation. The determinants of Herfindahl's Concentration Ratio are number of firms, average asset size of the firms and their skewness. The study also points to a possible generalized pattern that market concentration follows upon deregulation of the industry. [ABSTRACT FROM AUTHOR]