Determinants of nonperforming assets-bank-specific and macroeconomic factors: A panel data analysis of different group of commercial banks operating in India
This paper examines the relationship between the Net Nonperforming Assets (NNPAs) and the factors influencing them (bank specific and macroeconomic) for different group of Indian commercial banks (State Bank of India and its associates, nationalised banks, private Banks, foreign banks) in a panel da...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2016-12-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1234.pdf
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| _version_ | 1818132701020946432 |
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| author | Biswajit PATRA Puja PADHI |
| author_facet | Biswajit PATRA Puja PADHI |
| author_sort | Biswajit PATRA |
| collection | DOAJ |
| description | This paper examines the relationship between the Net Nonperforming Assets
(NNPAs) and the factors influencing them (bank specific and macroeconomic) for different
group of Indian commercial banks (State Bank of India and its associates, nationalised
banks, private Banks, foreign banks) in a panel data framework. From the macroeconomic
variables, two principal component series have been created; one is from the group of
variables having positive correlation with the NNPAs and the other from the group of
variables having negative correlation, for different type of banks. The linear and the
dynamic panel regressions and further Impulse Response analysis have been carried out to
check the linkages between the NNPAs with its determinants. The result shows that the
impact of determinants on NNPAs varies for different group of banks as the banking
practices and regulations vary among themselves. Indian banks got influenced more in
comparison to the foreign banks with the change in macroeconomic conditions. |
| first_indexed | 2024-12-11T08:41:00Z |
| format | Article |
| id | doaj.art-d05fba7e8d1a452e8b0d140cc9add0e9 |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-11T08:41:00Z |
| publishDate | 2016-12-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-d05fba7e8d1a452e8b0d140cc9add0e92022-12-22T01:14:15ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292016-12-01XXIII421523618418678Determinants of nonperforming assets-bank-specific and macroeconomic factors: A panel data analysis of different group of commercial banks operating in IndiaBiswajit PATRA0Puja PADHI1 Indian Institute of Technology Bombay, India Indian Institute of Technology Bombay, India This paper examines the relationship between the Net Nonperforming Assets (NNPAs) and the factors influencing them (bank specific and macroeconomic) for different group of Indian commercial banks (State Bank of India and its associates, nationalised banks, private Banks, foreign banks) in a panel data framework. From the macroeconomic variables, two principal component series have been created; one is from the group of variables having positive correlation with the NNPAs and the other from the group of variables having negative correlation, for different type of banks. The linear and the dynamic panel regressions and further Impulse Response analysis have been carried out to check the linkages between the NNPAs with its determinants. The result shows that the impact of determinants on NNPAs varies for different group of banks as the banking practices and regulations vary among themselves. Indian banks got influenced more in comparison to the foreign banks with the change in macroeconomic conditions. http://store.ectap.ro/articole/1234.pdf scheduled commercial banksdeterminantsnonperforming assetsNPAsbank specificmacroeconomic parametersprincipal componentspanel data modelsIndia |
| spellingShingle | Biswajit PATRA Puja PADHI Determinants of nonperforming assets-bank-specific and macroeconomic factors: A panel data analysis of different group of commercial banks operating in India Theoretical and Applied Economics scheduled commercial banks determinants nonperforming assets NPAs bank specific macroeconomic parameters principal components panel data models India |
| title | Determinants of nonperforming assets-bank-specific and macroeconomic factors: A panel data analysis of different group of commercial banks operating in India |
| title_full | Determinants of nonperforming assets-bank-specific and macroeconomic factors: A panel data analysis of different group of commercial banks operating in India |
| title_fullStr | Determinants of nonperforming assets-bank-specific and macroeconomic factors: A panel data analysis of different group of commercial banks operating in India |
| title_full_unstemmed | Determinants of nonperforming assets-bank-specific and macroeconomic factors: A panel data analysis of different group of commercial banks operating in India |
| title_short | Determinants of nonperforming assets-bank-specific and macroeconomic factors: A panel data analysis of different group of commercial banks operating in India |
| title_sort | determinants of nonperforming assets bank specific and macroeconomic factors a panel data analysis of different group of commercial banks operating in india |
| topic | scheduled commercial banks determinants nonperforming assets NPAs bank specific macroeconomic parameters principal components panel data models India |
| url |
http://store.ectap.ro/articole/1234.pdf
|
| work_keys_str_mv | AT biswajitpatra determinantsofnonperformingassetsbankspecificandmacroeconomicfactorsapaneldataanalysisofdifferentgroupofcommercialbanksoperatinginindia AT pujapadhi determinantsofnonperformingassetsbankspecificandmacroeconomicfactorsapaneldataanalysisofdifferentgroupofcommercialbanksoperatinginindia |