The banking sector plays a crucial role in the economic growth of a nation. The purpose of this study is to examine the long-term association between banks’ performance and the economic growth of a developing economy: India. The study used a panel of data of 20 public sector banks for the period 2009 to 2019. It applied the Pedroni and Kao test of co-integration, panel vector error correction model (VECM) dynamic, panel fully-modified ordinary least squires OLS (FMOLS), and dynamic OLS (DOLS) to estimate the relationship of interest margin return on assets, bank investment, and lending capacity of the bank with gross domestic product (GDP) of the country. The identification and incorporation of these bank-related variables are the innovations of this study. The results indicate that the bank-related variables are co-integrated with economic growth. Further analysis indicates a significant relationship between interest margin and return on assets with economic growth. In addition, lending capacity and investment activities are not significantly associated with economic growth, leading to the policy recommendation to improve upon these two factors in order to achieve higher growth rates.
The automobile industry in India occupies a vital role in the economic progress of the nation. The reputation of any industry depends on its liquid position, which helps a company in settling their dues in time. Liquidity denotes to the firm's capacity to pay their outstanding dues. The article considers liquidity position of automobile industry by employing correlation and regression test. The data required for the study is secondary in nature. The required data are collected from Capitaline database for the period ranging between 2008 and 2017. The collected data is analyzed by making use of correlation and regression. The result reveals that liquidity position of a company depends on age, inventory turnover ratio, dividend payout ratio and leverage.
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