Indian Banking Research Articles

Impact of efficiency and ownership concentration in Indian banks on their NPAs: a panel data analysis

Impact of efficiency and ownership concentration in Indian banks on their NPAs: a panel data analysis

Innovative Approaches to Bank Security in India: Leveraging IoT, Blockchain, and Decentralized Systems against Loan Scams

This research paper explores the significant impacts of multiple loan fraud on Indian banks and financial institutions, emphasizing the resulting bad debts and financial losses. The issue is exacerbated in the real estate sector, where influential developers exploit system vulnerabilities to secure multiple loans using the same collateral. Consumers also face challenges in accessing credit due to these fraudulent practices. The study underscores the need for enhanced regulatory measures and internal controls within financial institutions. Additionally, it introduces IoTBlockFin, a decentralized system that integrates block chain and IoT technologies to securely assess customer reliability and mitigate fraud. IoTBlockFin's Advanced Proof of Work (APOW) mechanism, combined with IoT data for real-time monitoring, offers superior security, latency, and cost-effectiveness compared to centralized systems, as demonstrated by experimental results.

Bank performance evaluation of sustainability strategy dimensions in the emerging market using the MCDM approach

Increased public awareness about the environmental and social impact of the businesses has led to the integration of sustainability into the core business activities. The banking sector, being one of the major drivers of the economy, is also focusing on social and environmental performance along with generating financial returns. The purpose of this paper is to evaluate the sustainability performance of Indian banks using grey relational analysis (GRA). This study uses three criteria to evaluate the bank’s sustainability performance, which include economic, environmental, and social. Grey relational grades are obtained for ranking the banks according to their sustainability performance. The novelty of the study lies in the fact that this study is the first attempt to evaluate the sustainability performance of Indian banks using the GRA methodology. This study has practical implications for the Indian banking industry, which could encourage managers to formulate policies and strategies for adopting environmental and social parameters in their operations to improve their overall performance. The study results could also influence investors to invest in banks seeking sustainability in their operations as the country progresses towards sustainable development.

Рупия против мировых резервных валют в российско-индийской торговле

This article analyses possible connection between sharp depreciation of the Russian Rouble in the second half of 2023 and the growing usage of Indian Rupees for settlement of Russo-Indian trade. Some experts explained that depreciation by the ‘Rupee trap’, which was created by quick growth of Russian exports to India while the opposite flow was not significantly changed. They suggested that superior export revenues of Russian companies from exports to India were accumulated in Rupee accounts in Indian banks. Then somehow, these Rupees have penetrated the foreign exchange market in Russia and have depreciated the Rouble exchange rate. Author has analysed available statistics from both countries and came to conclusion that described problem is factitious. It is true that the usage of Rupee for invoicing in the external trade of India has increased in the last couple of years. However, the real volume of such usage is much smaller than the volume of Indian external trade. Indian Rupee is not a freely convertible currency, so exchange of Rupee assets for other currencies is a subject of a range of restrictions and quotas. Foreign exporters to India are aware of this and in practice agree to accept Rupees only in limited amounts. A number of top-ranking people from Russia and India, who were well informed about mutual trade, confirmed such practice. Therefore, there is no reason to consider that Russian exporters might accumulate too big Rupee assets. In addition, statistics of currency invoicing of Russian external trade in 2022–2023 suggest that volumes of inward and outward flows of non-reserve currencies (like Renminbi, Rupee, Dirham etc.) are about equal. This means that demand/offer of such currencies are balanced. However, for the same period, the demand for Roubles outside Russia was bigger than their offer from Russia. So all together, this does not confirm assertions that increase of Rupee (or other non-reserve currency) assets was the main cause of the sharp Rouble depreciation in 2023.

Corporate sustainability reporting practices in the banking sector: A governance implication

This study aims to evaluate the level of sustainability reporting practices (SRP) in the Indian banking sector. The researcher used content analysis techniques to quantify the level of SRP in the post-merger and post-COVID-19 pandemic periods of the Business Responsibility and Sustainability Reporting (BRSR) period based on sustainability indicators prescribed by Global Reporting Initiative (GRI) standards, National Voluntary Guidelines (NVGs) on responsible business conduct, and literature review. The relevant data on sustainability reporting were extracted from business responsibility reports, corporate social responsibility (CSR) reports, and annual reports published by public and private sector banks in the 2021–2022 financial year (FY). The empirical findings showed that financial inclusion, green technology, and financial literacy are the top priorities under SRP among Indian banking companies. The study noted that banks in India pay limited consideration to indicators related to the environment (Mani, 2022). The findings further demonstrate a significant difference in sustainable reporting between public and private sector banks in India in terms of environmental and governance indicators (Kumar & Prakash, 2019a). This study strengthens the body of literature by evaluating the types of sustainable reporting practices in the Indian banking sector under the BRSR reporting regime after the COVID-19 pandemic period.

EMPIRICAL STUDY ON ADOPTION OF GREEN BANKING PRACTICES IN COMMERCIAL BANKS

Indian banks are eagerly anticipating initiatives in the green banking space, which is gaining popularity throughout the world. India aspires to join the ranks of Green Banking greats like the United States, Japan, Australia, etc. When it comes down to it, "Green Banking Products" are financial services whose main goal is green energy conservation. Finding out what's happening now, how users are aware of green banking practices, how customers perceive and favor these activities, and where the study may be improved upon are the main goals of the research. The research made use of both original and secondary sources of information. The data collection method chosen was Non-Probability Convenience Sampling. The results show that, in the current climate, green banking is crucial, according to most customers. The percentage of people using green banking products, such as ATMs and mobile banking services, exceeded 90% of the total. Green banking measures implemented by both public and private sector banks are well-known to nearly all customers. On a related note, it's safe to say that customers have learned about green banking through word of mouth and bank websites, rather than through print ads or television and online commercials, have major impact. In light of the present situation, the majority of the customers consider it necessary.

Does perceived corporate social responsibility improve customer engagement - An empirical evidence from Indian banks

Does perceived corporate social responsibility improve customer engagement - An empirical evidence from Indian banks

The financial stability of the banking sector: An empirical investigation using the CAMEL rating approach

The study compares the CAMEL ratings of five central Indian commercial banks over 12 years (2011–2022). The findings indicate that most banks received a rating of 1, with an average capital adequacy ratio (CAR) of 15.18 percent. Maintaining low non-performing loan (NPL) rates is a priority for Indian banks, as reflected in the average of 1.98 percent with a grade of 2. The research concludes that these banks are well-managed, showcasing an average operational efficiency/income ratio of 40 percent (rated 3), signifying good managerial efficiency. This suggests banks can meet short-term customer commitments and withdrawals adequately. Notably, State Bank of India (SBI) and Punjab National Bank (PNB) received a grade of 2, while Axis Bank, Industrial Credit and Investment Corporation of India (ICICI) Bank, and Housing Development Finance Corporation (HDFC) Bank scored a rating of 1. The study indicates that private sector banks outperform their public sector counterparts across all CAMEL model parameters, showcasing more robust performance metrics. The paper advises Indian banks to invest in the long run, watch their risks, and aim for steady growth and profit. The study emphasises the importance of capital, assets, and management for a healthy banking system, suggesting improvements in earnings and liquidity management for overall stability and growth.

Exploring Bankers' Perceptions of the Effectiveness of Red Flags in Fraud Detection: Evidence from Indian Banking Industry

Exploring Bankers' Perceptions of the Effectiveness of Red Flags in Fraud Detection: Evidence from Indian Banking Industry

Investigation of the Pre-Post-Merger Effects on the Financial Performance of Select Banks in India

Mergers and Acquisitions (M&A) have evolved as a tactical instrument for consolidating Financial Institutions and Banks in India, aiming to strengthen the capital base, extend business operations, and ensure financial stability, as part of the government's initiative to fortify the banking system, enhance its efficiency, and provide robust financial services. The mega-merger announcement on August 30, 2019, led to the amalgamation of ten public sector banks into four major banks. This research investigates the impact of mergers on the financial health of four bidder banks involved in the mega-merger from 2016–17 to 2022–23, utilizing standard accounting ratios, paired sample t-test, and an overall performance average analysis. The three years prior to and three years after the merger are compared in the study for accounting-based effectiveness. The investigation discovers a combined effect of mergers on overall financial performance ratios. Notably, Punjab National Bank demonstrates momentous improvements in ‘Capital Adequacy Ratio’ and ‘Total Loan to Total Deposit Ratio’. Canara Bank notably impacts ‘Debt-to-Equity Ratio’ and ‘Non-Performing Loans to Total Loans’. Concurrently, the Union Bank of India observes a significant effect on the ‘Debt-to-Equity Ratio’, while the Indian Bank exhibits a substantial change in ‘Capital Adequacy Ratio’ between the pre- and post-M&A time span.

Work-Life Balance of Women Employees in the Indian Banking Industry: An Empirical Study of the State of Haryana

A fulfilling existence is possible when one’s work and personal life are in harmony with one another. Finding a happy medium between one’s “work” (career goals) and one’s “life” (personal happiness, leisure activities, family, and spiritual growth) is what the phrase “work-life balance” (WLB) is all about. Today, women’s work-life balance (WLB) is more important than ever before because of the societal expectation that men and women should provide financially for their families (Doble & Supriya, 2010). This highlights the critical need for studies examining women’s WLB. Finding out what factors most affect women’s WLB is the primary objective of this study. 310 bank employees had their personal information gathered. Some exploratory methods that were used to evaluate the data were path analysis, structural equation modelling, factor analysis, and correlation. There was a strong correlation between workload, organisational support, and family support, as well as WLB. Companies can use this kind of information to zero in on the exact variables that increase WLB.

Financial outcomes hypothesized through serially mediated combination of eCRM, eService quality and relationship quality: A digitalisation aspect in modern retail banking

The study focuses on the financial outcomes of banks rushing towards digitalisation to sustain the steep enhancement of digital applications in the financial services sector. Digitalisation (including electronic customer relationship management (eCRM), electronic service quality (eService quality), and relationship quality) relation with the financial outcomes has been explored to achieve the purpose of the current study. The survey method has been adopted in the study. The survey has been presented to Indian Banking customers (through email, WhatsApp, social media, and references) using electronic/virtual/digital banking services to ensure the collection of appropriate responses. In total, 569 responses have been received, and only 523 were found suitable for the study. Serial mediation has been used to test the model using the AMOS software. The study highlighted a significant relationship between the digitalisation and financial outcomes of the banks. The relationship between eCRM and financial outcomes is serially mediated by eService quality and relationship quality. In banks, eCRM relates to financial performance (Rad & Taleghani, 2015). However, banks need to understand that the service delivery and the relationship quality over the virtual systems need to be enhanced and sustained to achieve any significant impact on the financial outcomes.

Does emotional intelligence influence occupational role stress, job satisfaction and life satisfaction A study in Indian banking sector

Does emotional intelligence influence occupational role stress, job satisfaction and life satisfaction A study in Indian banking sector

Assessment of financial performance post mergers and acquisitions: evidence from the Indian banking sector

Assessment of financial performance post mergers and acquisitions: evidence from the Indian banking sector

Impact of technological advancements on banking frauds: A case study of Indian banks

Impact of technological advancements on banking frauds: A case study of Indian banks

Performance measurement of Indian banking sector: a cross-section perspective

Performance measurement of Indian banking sector: a cross-section perspective

Analysis of Green Financing Incentives in Indian Banking Sector from Banks' Viewpoint

Analysis of Green Financing Incentives in Indian Banking Sector from Banks' Viewpoint

Do Merger Announcements Enhance the Wealth of the Shareholders? Evidence from India Banking Sector

The present study attempts to examine the impact of merger announcements on shareholders’ wealth of respective banks in the Indian banking sector. The study considers 13 mergers which include the merger of both public sector and private sector banks. Event Study Methodology has been used for the analysis purpose. The study uses both a one-factor model and a two-factor model to calculate the cumulative abnormal return in various time windows. The notable findings of the study demonstrate that the market reaction towards the merger announcement is negative in both the public and private sector banks. The impact on public sector banks is more compared to the private sector banks as the resulting Cumulative Abnormal Return (CAR) values are negative and significant. Contrary to the above findings, the shareholders of Kotak Mahindra Bank and ING Vyasa Bank have gained wealth as a result of the merger as the market has reacted positively to the merger announcement.

Analysis of Corporate Frauds in the Indian Banking Sector

Analysis of Corporate Frauds in the Indian Banking Sector

Soulful Workplace: Unveiling the Spiritual Dimensions of Indian Banking Industry

Soulful Workplace: Unveiling the Spiritual Dimensions of Indian Banking Industry