Abstract
The present study strives to identify the major factors influencing the non-performing assets (NPAs) of public sector banks (PSBs) in India using a panel dataset comprising of 26 PSBs over the period 1999-2000 to 2015-16. The results reveal that business per employee, operating inefficiency, priority sector lending, inflation and real interest rate have a significant positive influence on increasing NPAs of banks while credit orientation, higher capital adequacy, net interest margin, non-interest income, GDP growth, and financial intermediation are found to exert a significant favourable effect of lowering NPAs of banks. Most interestingly, the study also shows that the level of corruption and the rule of law significantly impacted the NPAs of Indian banks during the period under study.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: 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.