Indian Public Sector Banks 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

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.

The impact of digital banking service quality on customer loyalty: An interplay between customer experience and customer satisfaction

The purpose of this study is to examine the impact of service quality dimensions on customer experience, satisfaction and loyalty in the context of digital banking in Indian public sector banks. Data collection involved purposeful sampling, resulting in 524 valid survey responses. Psychometric characteristics were examined, and the hypotheses were tested using the Hayes process approach. Statistical analysis was conducted using SPSS 25 and AMOS 22 (structural equation modeling software). The study uses the Cognitive-Motivational-Relational (CMR) theory to examine the dynamics of service quality dimensions (RATER) in the context of digital banking, as well as their impact on customer experience and, ultimately, customer loyalty. The study’s findings reveal that service quality dimensions play a significant role in promoting customer experience. The study emphasizes the importance of customer experience as a predictor of customer satisfaction and loyalty. Customer satisfaction has been identified as a strong predictor of customer loyalty. It has also been identified as a mediating factor in the relationship between customer experience and loyalty. Banks and financial institutions can use these findings to optimize their digital banking services and enhance customer experience. Audits of the quality of digital banking services provided by Indian public sector banks will help them to strategize their operations in a highly competitive and digitized environment to meet the ever-increasing demands of today’s tech-savvy, digitally empowered customers who expect a seamless customer experience, thereby attracting new customers and strengthening the relationships with existing ones.

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

Evaluating the Impact of NPA Dynamics in Selected Indian Banks: A Fifteen-Year Comparative Study

Purpose: The purpose of this study is to investigate the impact on bank profitability, capital structure, and financial stability and trend analysis regarding non-performing assets [NPAs] performance in selected Indian public sector banks vis-à-vis that observed in private sector ones during fifteen years. Methodology: For this research, a quantitative methodological approach has been used, and for quantifiable data, annual reports from four select banks, which include two public sector banks [The Bank of Baroda, The State Bank Of India] as well as two private sector banks [ICICI Bank Ltd., Nainital bank], are analyzed for the period ranging 2008-09 to 2022-23. The analysis calculates Compound Annual Growth Rates [CAGR] and t-tests, Panel Regression models to determine the relationship between GNPA additions, reductions, and write-offs with closing balances. Findings: A major increase in GNPAs is observed in the research among Scheduled Commercial Banks. The public sector banks found an even larger dynamism in NPA growth rates than private sector banks, manifesting the fluctuation to a high degree. The study identifies GNPA addition, reduction, and write-off as key determinants of their respective closing balances. Even though there have been many policy initiatives, the public sector banks [PSBs] remain at a higher level of NPAs due to governance deficits and political interference. The effectiveness of these predictors on GNPA is also confirmed using the Random Effect Model, thus requiring improved risk management practices. Originality: The content of this article is guaranteed to be original.

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.

CSR Engagement Through Social Media: Implications for Indian Public Sector Banks

CSR Engagement Through Social Media: Implications for Indian Public Sector Banks

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.

The role of public sector banks in India

The role of public sector banks in India

Measuring Net NPA’s Of Public Sector Banks: A Study of Indian Public Sector Banks from 2017 to 2023

Measuring Net NPA’s Of Public Sector Banks: A Study of Indian Public Sector Banks from 2017 to 2023

Directed Lending System in India: A Review

Directed Lending has grown in significance since the nation's banks were nationalized. Commercial banks' Directed lending quotas have given birth to a significant instrument for distributing capital to self-employment programs, small businesses, and farmers. Priority sector requirements mandate that scheduled commercial banks lend forty percent of their total loan volume to the designated directed sectors in accordance with RBI directions. Over the years, the RBI has implemented numerous modifications to the standards for Directed Lending. The issue of NPA is not exclusive to Indian public sector banks; it is prevalent across the whole banking sector. A significant proportion of non-performing loans in Indian banks originated from credit to the directed sector under the influence of officials in charge of government. Had banks adequately supervised their credits, the issue of bad debt might have been controlled, if not eradicated. To determine how effective and efficient banks were, the majority of researchers relied on the DEA model. Fixed and random effect model, t test, Tobit regression, CCR, BCC are used to get the desired result. It is also found in different studies that there is one major issue, which is NPA. In this study, we try to find out the reasons and suggestions regarding NPA.

Empirical Analysis of Indian Public and Private Sector Banks' Financial Resilience Using the Bankometer S - Score Model

Empirical Analysis of Indian Public and Private Sector Banks' Financial Resilience Using the Bankometer S - Score Model

Bank-specific factors affecting the profitability of public sector banks in India: A dynamic panel approach

Bank-specific factors affecting the profitability of public sector banks in India: A dynamic panel approach

Post-amalgamation Performance Review of Six Public Sector Banks in India

Consolidation of public sector banks (PSBs) is a part of reorganisation efforts with an aim to improve their profitability, solvency and efficiency. Of late merger of five subsidiaries of State Bank of India and Bharatiya Mahila Bank Ltd with it in April 2017 has kindled interest in restructuring of unprofitable banks by merging them with a profitable one. In August 2019, the Government of India announced amalgamation of 10 PSBs constituting them into four entities under Punjab National Bank, Canara Bank, Union Bank of India and Indian Bank. Earlier in April 2019, another merger had taken place following the integration of Dena Bank and Vijaya Bank with Bank of Baroda. Studies reveal that while in European countries bank mergers led to improved efficiency, in Asian countries like Indonesia recapitalisation and diversification of banks improved their profitability. In a study of Nigerian banks in Africa it is revealed that post-merger, employee morale diminishes due to stress and anxiety arising out of possible job loss and possible challenges to be met in the new environment. In the present study, the authors have tried to ascertain how profitability, solvency and efficiency of banks improved post-amalgamation in six PSBs. The outcome of the result is a mixed one, while some banks improved their profitability and solvency parameters, for others it is not so perceptible. However, efficiency indicators do not have any significant result for all six of them after amalgamation.

A Novel Pythagorean Approach Based Sine-Shaped Fuzzy Data Envelopment Analysis Model: An Assessment of Indian Public Sector Banks

A Novel Pythagorean Approach Based Sine-Shaped Fuzzy Data Envelopment Analysis Model: An Assessment of Indian Public Sector Banks

Comprehensive intuitionistic fuzzy network data envelopment analysis incorporating undesirable outputs and shared resources

The economic growth rate is intricately linked to the efficiency and effectiveness of the banking industry. A widely applicable mathematical technique for such assessments is Data Envelopment Analysis (DEA), which evaluates the relative efficiency of Decision-Making Units (DMUs) by comparing their inputs and outputs. Traditional DEA treats DMUs as black boxes, neglecting internal processes that contribute to inefficiencies in individual DMUs. Additionally, it assumes precise values for inputs and outputs that do not apply to real-world problems. This study introduces a comprehensive network series of two-stage DEA, incorporating shared inputs and intermediate measures, undesirable outputs, external inputs and outputs, initial inputs, and terminal outputs. The network two-stage DEA is extended to intuitionistic fuzzy circumstances to address uncertainty. In this extension, a non-linear intuitionistic fuzzy number, namely a parabolic intuitionistic fuzzy number, represents higher-order imprecise datasets. An illustrative example validates the proposed methodology, and comparisons with existing methods are conducted. Moreover, the methodology is applied to assess the efficiency of Indian public sector banks, demonstrating its applicability and showcasing the efficacy of the procedures and algorithms used. Decision-makers can make better choices using optimal efficiency values to gain insights into inputs, intermediate measures, and outputs.•The research study focused on a network two-stage DEA model, incorporating undesirable outputs and shared resources in the presence of uncertainty.•The methodology involves solving the network two-stage DEA model using parabolic intuitionistic fuzzy numbers.•The experimental analysis involves assessing the efficiency of Indian public sector banks.

Analyzing the Impact of Intellectual Capital on the Financial Performance: A Comparative Study of Indian Public and Private Sector Banks

Analyzing the Impact of Intellectual Capital on the Financial Performance: A Comparative Study of Indian Public and Private Sector Banks

Corporate Governance Practices of Commercial Banks: An Investigation in Select Public Sector Banks in India

Corporate Governance Practices of Commercial Banks: An Investigation in Select Public Sector Banks in India

Impact of Income Diversification on Capital Market Investment Decision: A Study on Indian Public Sector Banks

Income diversification strategy is one of the useful tools of risk management technique. Banks have identified different sources of income apart from their traditional source of income. Capital market is one of such source of income identified by the banks today. Every year banks invest a large volume of fund in capital market. In this study it is attempted to observe the impact of income diversification on the capital market investment decision of the public sector banks in India. For this purpose data are collected from 12 public sector banks for 5 years period from 2017 to 2021. Variants of panel data regression analysis are applied in this study. The result revealed that there is a significant impact of income diversification on the capital market investment of Indian public sector banks.