التفاصيل البيبلوغرافية
| العنوان: |
Determinants of Non-Performing Loans in India: A System GMM Panel Approach. |
| المؤلفون: |
Mohanty, Asit Ranjan, Das, Binay Ranjan, Kumar, Satyendra |
| المصدر: |
Prajnān; Apr-Jun2018, Vol. 47 Issue 1, p37-56, 20p |
| مصطلحات موضوعية: |
NONPERFORMING loans, BANKING industry, FINANCIAL crises |
| مستخلص: |
The objective of the resent study is to investigate the determinants of Non-Performing Loans (NPLs) of the Indian banking system for the period 2000-01 to 2015-16. This study utilized the system-GMM panel estimation method. This method reduces finite sample bias and any other imprecision by regressing levels and changes in NPLs of its lags and other explanatory variables using lagged levels as instruments. The major findings of the study are as follows; (a) among macroeconomic variables; economic growth, stock market index and market capitalization ratio have negative impact on the Gross NPLs ratio, whereas, expansionary fiscal policy escalates the Gross NPL ratio. (b) Corporate specific variables; net sales growth (SLGC) and net profit margin (NPMC) have statistically negative impact on the Gross NPL ratio. (c.) Bank specific variables; higher credit deposit ratio, growth in bank branches, higher return on equity and higher CRAR will lower Gross NPL ratio. Higher operating expense ratio has significant positive impact on the NPLs, which is indicative of inefficiency of the banks. By examining the impact of corporate specific variables (e.g., SLGC and NPMC) on NPLs in India, the study has established a link between the balance sheet of banks and corporate sectors for the first time. It is established that strengthening the balance sheet of private corporate sectors will strengthen the balance sheet of banks by lowering the NPLs. Therefore, it resolves the twin balance sheet problem in India. [ABSTRACT FROM AUTHOR] |
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| قاعدة البيانات: |
Complementary Index |
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