Risk, Efficiency and Return of PSBs in India

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Yahoo! Mail Services
Yahoo! Mail Services
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Dr. Gian Kaur
Dr. Gian Kaur
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Pardeep Kaur
Pardeep Kaur
α Guru Nanak Dev University Guru Nanak Dev University

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Risk, Efficiency and Return of PSBs in India

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Abstract

The present study is an attempt to evaluate the performance of public sector banks in terms of credit risk, efficiency and their impact on the profitability of these banks. The study covered the period from 2000 to 2010. With the help of panel data regression analysis the study concludes that NPLs affect adversely the profitability of banks while risk aversion seems to be in favor of the public sector banks in India. Though significant progress has been made in NPLs management, much still need to be done in order to improve the performance of scheduled commercial banks. Keeping in view the gravity of credit risk, the study recommends steps, towards the recovery of such loans, to be undertaken and enforced by the RBI.

References

3 Cites in Article
  1. B Badola,Rocha Verma (2006). Determinants of Profitability of Banks in India: A Multivariate Analysis.
  2. M Bashir (2003). Determinants of Profitability of Islamic Banks: Some Evidence from the Middle East.
  3. Anthnia Davydenko (2010). Determinants of Bank Profitability in Ukraine.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Yahoo! Mail Services. 2013. \u201cRisk, Efficiency and Return of PSBs in India\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 13 (GJMBR Volume 13 Issue C7): .

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Issue Cover
GJMBR Volume 13 Issue C7
Pg. 17- 26
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Version of record

v1.2

Issue date

July 15, 2013

Language
en
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The present study is an attempt to evaluate the performance of public sector banks in terms of credit risk, efficiency and their impact on the profitability of these banks. The study covered the period from 2000 to 2010. With the help of panel data regression analysis the study concludes that NPLs affect adversely the profitability of banks while risk aversion seems to be in favor of the public sector banks in India. Though significant progress has been made in NPLs management, much still need to be done in order to improve the performance of scheduled commercial banks. Keeping in view the gravity of credit risk, the study recommends steps, towards the recovery of such loans, to be undertaken and enforced by the RBI.

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Risk, Efficiency and Return of PSBs in India

Dr. Gian Kaur
Dr. Gian Kaur
Pardeep Kaur
Pardeep Kaur

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