Impact of market competitiveness and risk management of NPAs of Indian banks on its efficiency

Kanoujiya, Jagjeevan; Rastogi, Shailesh

doi:10.1504/ijmef.2022.124962

Cited by 8 publications

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, these 33 banks capture the majority of the baking system in India. Hence, the sample is believed to provide enough insights into Indian banking (Kanoujiya and Rastogi 2022). These numbers have been extracted from the RBI's official website, where the Total number of banks is systematically classified into different categories.…”

Section: Sample Datamentioning

confidence: 99%

See 1 more Smart Citation

The Impact of ICT on the Profitability of Indian Banks: The Moderating Role of NPA

Thakur

Rastogi

Parashar

et al. 2023

JRFM

Self Cite

View full text Add to dashboard Cite

The role of Information and Communications Technology (ICT) cannot be ignored in today’s era of working. Its effects are studied in several sectors by various researchers. This study covers the impact of ICT on the profitability of banks. Thirty-three banks are operating in India. A sample period of 10 years (2010 to 2019) was studied. The study also provides insight into how ICT helps the banks’ profitability during and post-COVID-19. A panel data analysis is performed to estimate the results. This study found that ICT adversely impacts banks’ profitability (NIM) in India in a linear association. However, the quadratic association indicates a positive U-curved relationship between ICT and profitability. In addition, the Net of Non-Performing Assets significantly but negatively impacts the connectivity of ICT and profitability. The findings imply that banks should invest in ICT to maximize the long run. The findings have no significant implication on all stakeholders, including policymakers, shareholders, and managers, to consider implementing ICT tools as an essential factor in enhancing a bank’s profitability in the long run. In addition, the level of otherwise lowered investments in ICT cannot be a fruitful step. The current study augments the existing literature on banking by providing novel evidence on the association of ICT with profitability under the influence of NPA. This study argues for the application of ICT in banks in order to increase their profitability. ICT helps the bank maintain transparency, accountability, and even the reach of financial services increases. This situation again leads to the enhancement of the country’s economy.

show abstract

Section: Sample Datamentioning

confidence: 99%

“…The robustness or reliability of the results obtained has been checked with the help of the multi-model approach (Kanoujiya and Rastogi 2022;Gautam et al 2022). Most models show similar results, indicating that ICT significantly impacts banks' profitability in India.…”

Section: Robustness Checkmentioning

confidence: 99%

The Impact of ICT on the Profitability of Indian Banks: The Moderating Role of NPA

Thakur

Rastogi

Parashar

et al. 2023

JRFM

Self Cite

View full text Add to dashboard Cite

show abstract

Do promoters cause financial distress in a bank?

Rastogi,

Kanoujiya

2024

View full text Add to dashboard Cite

Purpose The study aims to explore the impact of ownership concentration (OC) on bank financial distress (FD). Furthermore, the bank’s financial stability levels determine the association between the two. Design/methodology/approach Bank data of 33 Indian commercial banks are procured for ten years (2013–2022). The panel data econometrics is applied for empirical estimations. The quantile regression approach is used to determine the association between OC and FD at different quantiles of the FD. Non-normalcy of the data is checked and ensured before applying the quantile regression. Findings Surprisingly, it is found that promoters have a nonlinear impact on the firm’s stability. The inverted U-shape result implies that as promoters cross a threshold level, the benefit of increasing promoters’ stake takes a beating and a further increase in promoters’ stakes adversely impacts the stability of the banks. Moreover, this threshold value increases while moving from low to high levels of stability in a quantile regression application. Research limitations/implications This study uses promoters as the proxy for OC. Other existing definitions of OC are not used in the study, which can further improve the robustness of the results. Additionally, the use of the type of ownership (private, public or foreign) is also not adopted in the present study. Both the limitations can be the study’s future scope on the topic. Practical implications The high OC is supposed to influence corporate governance adversely. Therefore, policymakers recommend low OC for better governance. However, the present study finds evidence that a higher OC (high threshold of OC as the stability increases) would be better for financial stability. This situation demands a trade-off between governance and financial stability regarding OC. Originality/value The authors do not observe any study having the nonlinear impact of OC on financial stability (opposite of FD). Moreover, the threshold of OC for the optimum level of financial stability increases as stability goes high. This evidence using quantile regression and finding the turning point using a quadratic equation is also not seen in the literature.

show abstract