Abstract
Commercial banks play an important intermediation role by investing in financial assets. The paper first analyses the banks on the basis of the computed Hannan Henweck G score. Further, discriminant analysis is used to find significant drivers of performance in banks including the G score. Although, being rigorous in computation, discriminant analysis technique helps us in capturing all the crucial information in one composite score. Division of banks into high and low-performing zone helps us identify significant drivers of performance in Indian banks. Use of multivariate statistical measure signals towards higher solvency score and greater credit risk to become a high performer. Classification precision of 86% is achieved thereby signalling towards the relevance of the study.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
