Influence of internal and macro factors on profitability of Indian commercial banks: empirical study

Allamy, Karrar Khalaf; Mansour, Ahmad Moh’d; Ahmad, Anwar; Homaidi, Eissa A. Al

doi:10.48185/sebr.v1i1.74

Cited by 4 publications

(1 citation statement)

References 11 publications

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“…This relationship is significant to bank decision-makers since it shows that more deposits always don't mean more profit unless they are invested in or transferred to investors. This significant negative impact of the deposit ratio was also found in studies by Allamy, K. K., 2020, and. However, the results contradict some other studies (Yahya et al, 2017;Tarawneh, 2006;Gul et al, 2011;and Naeem et al, 2017).…”

Section: Discussionmentioning

confidence: 42%

Impact of Bank Specific and Macro-Economic Factors on Financial Performance of Commercial Banks in Afghanistan

Akbari¹,

Naseri²

2022

KJEMS

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This study was carried out to examine the effects of bank-specific factors and macroeconomics on the financial viability of commercial banks in Afghanistan. The ten banking institutions' panel data sets for the years 2010–2021 were used. A random Effect model of regression was applied. The model of random effects was recommended when the Hausman test was employed to confirm the models' fitness. The null hypotheses were also rejected based on the results of the Wooldridge test for serial correlation and the modified Wald test for group-wise heteroscedasticity. The findings of current research revealed that bank determinants, specifically liquidity and asset management, showed a positive but slight effect on bank profits, while deposit ratio, bank number of branches, and ATMs showed a negative influence. Regarding macroeconomic factors, the outcomes indicated that the influence of the GDP, exchange rate, and inflation rate on bank profitability was negative, while the interest rate, taxes, and industry growth rate had a positive and significant impact on bank profitability. Additionally, by highlighting weak points, the study's findings will assist the management of banks, financiers, the government, policymakers, and shareholders in taking better decisions and enhancing bank performance. Overall, decision-makers need to be better knowledgeable about the factors that affect the profitability of Afghan commercial banks.

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Section: Discussionmentioning

confidence: 42%

Impact of Bank Specific and Macro-Economic Factors on Financial Performance of Commercial Banks in Afghanistan

Akbari¹,

Naseri²

2022

KJEMS

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The relationship between zakat disclosures and Islamic banking performance: Evidence from Yemen

Homaidi

Al‐Matari

Anagreh

et al. 2021

Banks and Bank Systems

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This paper aims to analyze the link between the disclosure of zakat information and the performance of Islamic financial institutions in Yemen. Panel data of three Islamic banks working in Yemen were used. The study used a 16-item disclosure index to measure zakat disclosure information, and the financial performance of banks was calculated using two proxies, such as return on assets (ROA) and return on equity (ROE). Based on secondary data, this study used correlation matrix, descriptive analysis and regression analysis. ROA results revealed that zakat data and the age of a bank significantly affected financial results calculated by ROA, while the size of Islamic banks had an insignificant influence of banking performance. Zakat information and the size of Islamic banks have a positive effect on bank performance, while the age of the bank negatively influences the performance of banks. The results concerning ROE indicated that zakat data and the age of a bank have a strong and significant influence on the performance of banks, determined by ROA, while the size of a bank has a negative and insignificant effect on the performance of banks, determined by ROE.

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Capital adequacy determinants of Indian banks listed on the Bombay Stock Exchange

Senan

Belhaj

Al‐Matari

et al. 2022

Investment Management and Financial Innovations

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This study examines the influence of corporate-specific factors and external factors on capital adequacy of Indian banks listed on the Bombay Stock Exchange (BSE). This study used a GMM estimation (pooled, fixed, and random) for the period 2009–2018 to study thirty-seven Indian listed commercial banks. Banks’ capital adequacy (CAAD) is used as a dependent variable measured by equity to total assets. While corporate specifics factors include bank size, asset quality, liquidity ratio, deposit ratio, asset management, operating efficiency, return on assets, net interest margin, and non-interest income, external factors are economic activity, exchange rate, and interest rate. The results of this paper found that the deposit ratio, asset management, bank size, and operating efficiency are the main factors influencing banks’ CAAD of Indian listed firms during the period of the study. The outcomes revealed that the deposits ratio, asset management, and bank size have a negative and significant influence on banks’ CAAD, while operating efficiency has a positive and significant impact on CAAD. In terms of external indicators, the results revealed that gross domestic product and interest rate have a negative and significant effect on CAAD of Indian listed banks, except that the exchange rate has a positive and significant influence on CAAD. AcknowledgmentThe authors would like to thank the Arab Open University, Kingdom of Saudi Arabia, for supporting this research paper.

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Influence of internal and macro factors on profitability of Indian commercial banks: empirical study

Cited by 4 publications

References 11 publications

Impact of Bank Specific and Macro-Economic Factors on Financial Performance of Commercial Banks in Afghanistan

Impact of Bank Specific and Macro-Economic Factors on Financial Performance of Commercial Banks in Afghanistan

The relationship between zakat disclosures and Islamic banking performance: Evidence from Yemen

Capital adequacy determinants of Indian banks listed on the Bombay Stock Exchange

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