Indian Banking Sector Research Articles

Performance Assessment of Selected Public Sector Banks in India: A Balanced Scorecard Analysis

This study examines the performance of selected Indian public sector banks — State Bank of India (SBI), Bank of Baroda (BOB), Canara Bank, Union Bank of India, and United Commercial Bank (UCO Bank) — using the Balanced Scorecard (BSC) framework. The BSC assesses banks across four perspectives: Financial, Customer, Internal Business Process, and Learning & Growth. Each perspective provides insights into a bank’s strategic strengths and areas for improvement. Results indicate that financial stability is well-maintained, though variations in customer engagement and internal processes suggest opportunities for operational enhancement

Merger and Acquisition of Indian Banks and Their Impact on its Financial Performance & Shareholder Wealth

This study investigates the financial performance and shareholder value outcomes of mergers and acquisitions (M&A) in the Indian banking sector. Through the analysis of three major bank mergers—State Bank of India and its associates, Bank of Baroda with Vijaya and Dena Banks, and Punjab National Bank with Oriental Bank of Commerce and United Bank—the research evaluates operational performance, profitability, and shareholder returns pre- and post-merger. Using financial ratios and t-tests, the study identifies significant changes in financial metrics and shareholder wealth. The findings suggest that while M&A can enhance operational efficiency and shareholder value, the results vary based on individual merger circumstances and integration strategies.

Nationalisation, Corporatisation, Disinvestment and Privatisation: The Four Stages of Engagement with the Markets in the Context of Financial Inclusion

The article looks at four phases of state engagement in financial inclusion. The first phase of involvement is classified as nationalisation, where the state takes control of both the strategic and operational control of a significant part of the market. The second phase is where the state can test the viability by retaining control but distinguishing between the departmental approach and a special purpose vehicle, which works on market principles. The third phase comes when the state is convinced that the market principles operate and therefore a part of the pie could be occupied by the market players, and the final phase is where the state can theoretically operate through policy and regulation without active participation in the market. The article looks at the evolution of the Indian banking sector through these four phases and concludes that we have passed the nationalisation phase. The state-owned Regional Rural Banks and the entire cooperative and community-owned structures are in the corporatisation phase that needs recapitalisation backstopping from time to time. The state-owned commercial banks have reached the disinvestment phase, and commercial banking in India, including the universal banks and the small finance banks, is in the privatisation phase. JEL Codes: D63, G18, G20, G21, G28, L32, L38

Predicting Bank Nifty Movements Based on ICICI, HDFC, and Axis Bank Returns

This study investigates the link between the returns of ICICI Bank, HDFC Bank, and Axis Bank and the overall performance of the Bank Nifty index, which is a crucial measure of the Indian banking sector's health on the National Stock Exchange. Using five years of historical data, regression analysis and descriptive statistics evaluate trends, correlations, and prediction accuracy in anticipating Bank Nifty returns based on the performance of these large banks. The study finds that while Bank Nifty displays stability as it aggregates multiple bank stocks, individual banks like Axis Bank and HDFC exhibit distinct volatility patterns, with Axis Bank showing significant fluctuations due to firm-specific and external factors.Regression results show a little association between individual bank returns and the Bank Nifty, indicating that the index has limited predictive value for single equities. Nonetheless, knowing these patterns may help investors manage risk, anticipate market changes, and develop portfolio diversification methods. The findings emphasize the relevance of sector-specific patterns, implying that although Bank Nifty captures broad market movements, other elements have a distinct influence on each bank's performance, providing insights for more sophisticated investment and risk management methods.

Managerial insight on triple bottom line reporting – an analysis of the Indian banking sector

Purpose Reporting on triple bottom line (TBL) practices has emerged as an essential aspect in banking sector due to evolving social and environmental concerns. Engaging in social and environmental activities is a strategic means to uphold dynamic alliances with stakeholders and eventually attain sustainable development. Furthermore, perception towards social and environmental practices is strategic to satisfy stakeholders’ interests. This paper aims to examine managers’ perception about reporting on social-environmental performance and its impact on financial performance (FP) in Indian banking sector. Research further assesses moderating effect of gender and experience in influencing the relationship between the constructs and also determines importance and performance of the constructs. Design/methodology/approach A well-structured questionnaire was distributed to 400 bank managers across India’s public, private, regional-rural, foreign and cooperative banks. The collected data were analysed through Smart PLS structural equation modelling. The moderating effect of demographics of bank managers in influencing the relationship was assessed using PLS-multi-group analysis (MGA). Besides, importance performance map analysis (IPMA) was used to understand the importance and performance of the constructs. Findings Findings indicate that bank managers believe that social and environmental activities strengthen relations between banks and stakeholders, resulting in better FP, thereby endorsing the stakeholder theory. Results of MGA suggest that gender and experience of bank managers are not effectual moderators in determining relationship between the constructs. Using IPMA, findings advocate that managers perceive environmental performance as a relatively high performance and a more important construct in influencing FP than social performance. Social implications Research would pave the way for banks to effectively communicate their commitment to sustainable development goals, engage stakeholders and demonstrate their commitment to creating positive social and environmental impacts. Furthermore, managerial perceptions can have a marked effect on customers’ understanding of social and environmental practices. This may influence customer satisfaction, conviction, commitment and constancy. Besides, a better understanding of the performance on social and environmental aspects over and above the FP of banks would facilitate the investors to make more informed and effectual decisions. Originality/value Considering the paucity of studies on the managerial perception of social and environmental activities and determining how the perception affects financial success, this study makes significant contribution to the literature. It would facilitate banks to design appropriate strategies and legislations to incorporate reporting on TBL practices for improved performance analysis. This would eventually ensure profitability along with sustainability in the Indian banking sector.

The Impact of Regulatory and Technological Advancements on the Indian Banking Sector: A Comparative Analysis of Leading Banks

Lending or investing in securities, for the purpose of lending or investment, and which is a scheduled bank. "Over the last decade, the Indian banking sector has witnessed several positive developments and notable improvements in regulation. The policymakers, including the Reserve Bank of India Ministry of Finance, and other relevant government and financial sector regulatory entities, have played a crucial role in these advancements. One of the significant achievements in the Indian banking sector is the improvement in key metrics such as growth, profitability, and the management of non-performing assets. The sector has witnessed steady growth, with banks expanding their operations and increasing their market presence. Profitability has also improved, with many banks reporting robust financial performance. Efforts have been made to address the issue of which are loans or assets that have become non-performing or in default. and the government have implemented various measures to enhance asset quality and reduce These include the introduction of mechanisms like asset quality reviews, prompt corrective actions, and the Insolvency and Bankruptcy Code to facilitate the resolution of stressed assets. Moreover, a few banks in India have achieved remarkable success in terms of innovation, growth, and value creation. These banks have demonstrated a strong commitment to customer-centric services, technological advancements, and the adoption of innovative banking practices Overall, the study's findings provide evidence that disinvestment and associated reforms can positively impact the performance and government control may not necessarily need to cease entirely to achieve this improvement. It appears that the statement is discussing the historical context of the Indian banking sector until. During this period, banks in India operated in a protected environment characterized by government control and regulatory restrictions. Administered interest rates, high reserve requirements, and directed credit were prevalent measures implemented by the government. These initiatives have helped them enhance their competitiveness and contribute to the overall growth of the sector. In conclusion, the Indian banking sector has experienced positive transformations over the last decade. The efforts of policymakers and regulatory entities have played a crucial role in improving regulation and promoting growth. The sector now compares favorably with banking sectors in the region in terms of metrics such as growth, profitability. Additionally, certain banks have emerged as leaders in innovation, growth, and value creation, setting a benchmark for others in the industry wider mandate to serve as the principal banking institution in the country. They have introduced digital banking solutions, expanded their product offerings, and implemented efficient risk management systems. Utility services refer to a range of non-core services provided by banks, such as facilitating utility bill payments, offering insurance products, selling mutual funds, providing account services, and other similar activities. These services are aimed at enhancing customer convenience and meeting their diverse financial needs. The history of banking in India dates back to the early when three Presidencies’ These banks were granted the power to issue banknotes. Taken as Alternative parameters for AXIS bank, HDFC bank, ICICI bank, KMB bank, FBL bank, IBL bank, RBL bank, DCB bank, SIBL bank” Evaluation parameter taken as PB Banks, Net profit margin %, Return on long-term fund %, Return on net worth %, Interest income to total funds %, Interest expended to total funds %, Operating expenses to total funds %. the first ranking training is obtained with the lowest quality of compensation.

A BRIEF ANALYSIS OF THE BANKING INDUSTRY IN INDIA

This research paper explores the evolution and current dynamics of the Indian banking sector, focusing on the role of digital transformation and the performance of public, private, and foreign banks. Focusing mainly on the decadal data from 2013 to 2023, the study analyzes the growth of bank assets, the Credit-Deposit (C-D) ratio, and the penetration rate of online banking. The findings demonstrate that the banking sector in India has undergone significant changes, with technological advancements driving increased efficiency and customer reach. Public sector banks faced challenges due to non-performing assets (NPAs), while private sector banks showed robust asset growth, recovering quickly from the economic impact of the COVID-19 pandemic. Foreign banks also displayed resilience, with steady growth in assets. The research highlights the critical role of digital banking in modern banking services, contributing to financial inclusion and economic growth. KEY WORDS: public, private, foreign, assets, Credit-Deposit ratio, online banking

Elucidating the Non-Performing Assets in Indian Banking Sector: Does Macroeconomic Factor Matter?*

Using the system generalized methods of moments on panel data set of 45 selected Indian commercial banks from 2005–2006 to 2019–2020, the study investigates the determinants of non-performing assets (NPAs), taking into account macroeconomic and bank-specific factors. The study finds evidence of a persistent effect in stressed assets. The profitability ratio, operational capacity, cost efficiency and aggressive lending negatively and significantly affect the NPAs. The negative impact of the profitability ratio implies that less efficient banks are more exposed to bad loans. While cost efficiency discourages the NPAs, on the other hand, higher credit deposit ratio (operational capacity) suggests that a well-diversified portfolio leads to lesser probability of loan defaults. The probability of loan default is high when more advances are released to the economy’s weaker and vulnerable sectors (high-priority sector lending). Small-sized banks are more efficient in NPAs management than large-sized banks. Various macroeconomic variables, such as lending rates and credit growth in the banking industry, significantly affect the NPAs. The higher lending rate adversely affects borrowers’ repayment capacity, leading to more stressed assets. Therefore, to maintain bad assets within a bearable limit, policymakers should take macroeconomic determinants into consideration.

“A Study on Challenges and Opportunities of Emerging Technologies in the Indian Banking Sector”

Abstract: In recent times, a multitude of technologies have surfaced and are currently being extensively employed within the banking and financial industries. Among the various technologies available are robotic process automation (RPA), machine learning (ML), artificial intelligence (AI), big data, block chain integration, cyber security, cloud computing, and cryptocurrency. These technological advancements ease human lives. On the other hand, some people are not aware of them in the public domain. This study aims to educate readers on the benefits of these technologies in financial services and how they can be used to their advantage. The data from this study will assist different stakeholders in developing plans for growing their businesses and acquiring new clients while gaining a competitive edge. Since the descriptive technique was most suited for this topic, it was used to perform the research. Information was gathered from a variety of sources, including websites for listed businesses, RBI, SEBI, and published reports. Credit evaluation, check payments, money transfers, merchant services, currency exchange, wealth management, stock market, portfolio management, and insurance are only a few of the processes that heavily rely on the chosen technologies. Therefore, this is beneficial to all parties involved in these companies. One significant outcome of this study is the rapid growth of digital accounting, which in the future may totally replace human labor.

An Analytical Study on Account Holders' Perceptions and Satisfaction with reference to Banking Service Quality Post Merger of selected Public Sector Bank in India

Public Sector Banks in India have undergone significant mergers, which enable them to expand their activities, develop further, and strengthen their position as a key sector in the economy. Despite challenges such as rising non-performing assets, increasing frauds, political interference, and favouritism, mergers and acquisitions are graceful to benefit the newly formed banks, the economy, and the industry as a whole. This study examines the impact of recent bank mergers on customer awareness, perceptions, and satisfaction levels, focusing on four major public sector banks: Bank of Baroda, Canara Bank, Union Bank of India, and Indian Bank. Data were collected using structured questionnaires and personal interviews, incorporating 16 variables measured on a five-point Likert scale. The reliability of the data was confirmed with a Cronbach's Alpha value of 0.816, indicating high internal consistency. Analysis using One-Way ANOVA and descriptive statistics revealed significant variations in service quality perceptions across different age groups and bank affiliations, while awareness, digital banking, product/service efficiency, and trust/confidence showed consistent perceptions. The study highlights the positive reception of technological improvements post-merger and provides insights for banks to tailor their communication and service strategies to different customer demographics.

Assessing the Impact of Women Discrimination in HRM Practices on Three-component Model (TCM) of Organizational Commitment: A Study on the Indian Banking Sector

Notably, social-psychological approaches such as relative deprivation theory (personal and collective) and social exchange theory posit that there exists a negative association between women discrimination in HRM practices and organizational commitment. It is pertinent to note that the study of organizational commitment is significant across behavioral and attitudinal perspectives as well as differing conceptualizations. Considering this, the present study aims to investigate the causal linkages between women discrimination in HRM practices and the three-component model (TCM) of organizational commitment in the Indian banking sector. To test the hypothesized relationships, partial least squares structural equation modeling (PLS-SEM) was used on a sample of 394 women employees from the following banks in Northern India—State Bank of India, Punjab National Bank, Housing and Development Finance Corporation Bank, and Jammu and Kashmir Bank. The results obtained revealed that women discrimination in HRM practices has a significant negative impact on all three components of the TCM approach of organizational commitment—affective commitment, continuance commitment, and normative commitment. Specifically, the negative effect was found more on affective commitment and normative commitment, unlike continuance commitment. Consequently, the current study has thrown light on theoretical and managerial implications along with directions for future research.

An Evaluation of Assets Quality of Selected Public and Private Sector Banks in India

The banks performance within a nation needs to be thoroughly assessed, as it plays a crucial role in influencing the country's economic health. This study aims to analyse and evaluate the asset quality of sample Indian public and private sector banks over a ten-year period, from the year 2013-14 to 2023. Banks were chosen based on their market capitalization and net profit, including major public sector banks such as SBI, BOB, and PNB, alongside leading private sector banks like HDFC, ICICI, and KOTAK Bank. The financial performance analysis employs the CAMEL rating model, focusing on the acronym "E." The CAMEL model parameters include Capital Adequacy Ratios (C), Asset Quality Ratios (A), Management Efficiency Ratios (M), Earnings Quality Ratios (E), and Liquidity Ratios (L). The results are analyzed using descriptive statistics. Data for this study were gathered from bank websites, and the CAMEL Model Asset Quality Ratios were applied after processing and organizing this information. Hypothesis testing involved calculations using simple averages and One-way ANOVA. The analysis of the data indicated that private banks excelled in all the ratios of the Asset Quality Parameter than the public banks. Hypothesis testing showed that there is no significant difference between the performance of public and private sector banks when it comes to the asset quality parameter.

Comparative Analysis of Non-Performing Assets Between Canara and Public Sector Banks in India

Non-Performing Assets (NPAs) represent a major challenge for financial institutions, particularly public sector banks (PSBs) in India. This study undertakes a comparative analysis between Canara Bank and other PSBs to assess trends, impacts, and management practices related to NPAs. The study explores factors leading to the rise of NPAs and their financial impact on profitability and liquidity. Through a literature review, data analysis, and hypothesis testing, this research identifies challenges and offers recommendations for improving NPA management practices in India’s banking sector. The findings highlight the need for robust credit risk management and improved regulatory interventions

Job Satisfaction of an Employee in Karnataka Gramin Bank in Koppal District, Karnataka

Karnataka Gramin bank is one of the leading public sector banks in India. It has its own role in development of rural areas by providing maximum financial facility. The employee performance has great influence on performance of Karnataka Gramin bank in rural areas. The result of research study shows that there is high level satisfaction in respect of majority of the factors and moderate satisfaction in some factors. In overall, the respondents with dissatisfaction are very low.

Moving toward Bank 4.0 in India: a qualitative thematic analysis and future research agenda

Purpose The banking sector is more revolutionized than ever, with advanced technologies driving a seismic change in the financial industry. This study aims to understand how digital technologies influence banking sector employees and their perception of working in an era of Banking 4.0. Design/methodology/approach This study incorporated qualitative analysis to gain different insights from diverse respondents from banking industries. A purposive sampling method was adopted, and semistructured interviews were conducted, taking a sample of 72 respondents. All the transcripts were then analyzed using NVivo. Findings The findings focus on challenges related to understanding technology phenomena, managing changes, infrastructure, skills, competitiveness and regulatory mechanisms. This is further followed by the favorable impact of Banking 4.0 on employees and future avenues, such as innovation in financial services, work productivity, career opportunities and change management, banking 4.0 and banking 5.0, and banking 4.0 management strategies identified as the significant findings. Practical implications This study provides guidelines for Banking 4.0 provision strategy and conceptual reference toward the development of Banking 4.0. It also supports the Enhanced Access and Service Excellence 4.0 program, driven by the Indian Bank’s Association, to focus more on digitization, automation and data analytics. Originality/value The novelty of this research provides a qualitative hierarchy of significant challenges, favorable impacts and future research avenues of Banking 4.0 in the Indian banking sector.

Analyzing the fraud tendency in the Indian Banking sector

At present, the Indian banking sector is having of worldwide importance for a few years due to its robust regulatory measures and least bank failures during recession and other difficult situations. Banking plays a prominent role in providing required monetary resources for every sector to meet their objectives. At the same time, the banking sector has been facing major challenges like increasing fraudulent cases as Indian banks lost Rs.5.22 lakh crores public money by a way of fraud reporting during the last twelve years, which dents our country’s economy badly. The current study is to analyze the fraud trend and nature wise frauds in Indian public and private sector banks during the period 2012-2023 and further, the current research aims to study the measures taken by Reserve Bank of India and individual banks to curtail the frauds during the said period. Primary data was obtained from bank employees and secondary data from authenticated sources was taken for this study. Our finding revealed that several bank frauds do not differ significantly between the public and private sector banks in terms of amount under cheating & forgery and fraudulent encashment nature. Further, it was observed that fraud amount reporting by public sector banks and private sector banks has been decreasing in trend since 2020 due to the preventive steps initiated by RBI and individual banks.

Role of Generative Artificial Intelligent In Indian Banking Sector: Challenges & Opportunities

Generative Al offers a considerable improvement over the traditional Al models which are mostly employed for classification or prediction tasks. In addition to supporting data augmentation in situations where data is scarce, it exhibits creativity in producing original text, images, or music. It also enables personalization to produce tailored content, greatly improving user experience and opening up new avenues for increased productivity for business and technology teams. Gen AI is completely changing the banking industry by producing content, mimicking human behavior, enhancing client interactions, offering real-time support, and increasing operational efficiency. Through deep learning algorithms, it improves client experiences, expedites procedures, and strengthens risk management. By putting ethical standards into place, encouraging openness, and guaranteeing data security and privacy, the sector can realize this potential. Banks are using generative artificial intelligence (AI) to solve persistent problems like fraud detection, fraud prevention, customer targeting, data summarization, enhancing conversational bots, and product integration. This technology can supply digital items through digital channels, increase data summarization, and improve user experience.

Loan delinquency in private sector banks in Kerala

The Indian Banking Sector faces significant difficulties in recovering debt. The banker must understand the underlying causes of loan delinquency to address the problem efficiently. A delinquent loan becomes a NPL (Non Performing Loan) when the borrower failed to repay the loan for a period of 90 days or more. Delinquency is the sign of increased credit risk, warnings of willful default, poor asset quality management and operational inefficiency. It may help to predict the loan loss provision for the sub standard, doubtful and loss assets. This article explores the various causes of loan delinquencies of private-sector banks operating in Kerala. The analysis revealed that the retails and SMEs registered high level of loan delinquency. A significant difference was found between the old and new generation private sector banks for the Poor loan portfolio management, inadequate collateral, inadequate monitoring and follow-up. From the mean score it is evident that the NPA management in new generation private sector banks is appreciable when compared to old generation private sector banks.

Service Quality Model for Modern Retail Banks in India – A Questionnaire Development and Validation

With significant changes in the Indian banking sector, private sector and foreign banks greatly emphasise the standardisation of 'high-tech' services and their application in retail banking. The shift in how modern banks are perceived for the quality of their services in recent years has made it more important for scholars and professionals to comprehend its facets. Prior research on this concept has mainly focused on the SERVQUAL model (developed by Parasuraman et. al, 1988). The theoretical contribution of the present study lies in extending the SERVQUAL model to modern retail banks in India. The study starts with identifying and testing dimensions of service quality. Based on the analysis of data collected from 173 customers of different banks, the questionnaire has been found to be reliable and valid for measuring various dimensions of service quality in modern banks in India.

Resilience! An intensifier for servant leadership? An employee engagement perspective

PurposeDrawing insights from the “Substitutes for Leadership” Theory, this study intends to examine the moderating role of resilience between servant leadership (SL) and employee engagement (EE). Particularly, relying on the issue that there are certain barriers, which hamper the effective execution of SL in the workplace, this study proposes to check that whether or not, resilience can intensify the effect of SL on EE.Design/methodology/approachA cross-sectional study was conducted on 241 employees working in the Indian Banking and Insurance (B&I) sector using the SPSS (v20), and the AMOS software (v21).FindingsThe study’s results revealed that SL is significantly related to EE. Also, this relationship is stronger for the employees who experience a high level of resilience, thus denoting that resilience works as a booster for SL.Research limitations/implicationsThis study has certain limitations like being cross-sectional in nature and covering only B&I sector employees.Practical implicationsSince resilience helps in intensifying the effect of SL on EE, the organizational HR managers should devote efforts to make their workforce resilient.Originality/valueThis paper is the first of its kind which empirically investigated the intensifying role of resilience for SL style.