Public Banks Research Articles

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

A comparative study on the impact of service quality on customer satisfaction: Survey of joint venture and government banks in Nepal

This study explores the relationship between customer satisfaction and service quality, of the inquiry is the evaluation of client satisfaction regarding the caliber of service rendered by Nepalese commercial banks. The study attempts to determine the effect of focusing on how important it is for service quality to influence customer contentment. The primary focus service quality on customer satisfaction within the Nepalese banking industry is by using descriptive and causal comparative research techniques. A total of 383 samples were taken from six joint venture banks and three public (or Government ownership) banks in Nepal. Using primary data obtained from a survey with a five-point Likert scale, correlation and regression analysis are used in the study to examine the impact of several service quality parameters on customer satisfaction. The results show that, in the Nepalese banking industry, responsiveness, reliability, assurance, and empathy have a positive and significant association with customer satisfaction. However, responsiveness does not significantly affect customer satisfaction.

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.

A comparative study on the efficiency of the public and private sector banks post-merger: A Data Envelopment Analysis

The paper compares the operation efficiency of the public service banks against the private service banks post-merger. The paper also makes an attempt to rank the individual banks in the years before and after mergers. Hence, the study taken a period of five years from 2017 to 2022. The researchers employed the data envelopment analysis (DEA) methodology to calculate the efficiency. From this viewpoint, the merger of the public service banks enhanced their performance but still lagged behind the private sector banks.

Sector and employee withdrawal behavior: evidence from licensed public and private sector commercial bank staff of Sri Lanka

Employee well-being and organizational effectiveness are seriously threatened by withdrawal behavior in the ever-changing business environment. This study explores the complex link between the banking sector (public and private) and employees' withdrawal behavior. Further, which sector of banking staff has more withdrawal behavior is investigated in this study. Regression modeling and quantitative analysis are used in this study to provide persuasive insights into how the sector affects physical and psychological withdrawal behavior (WBP and WBS). Primary data is used in this study, collected through a Likert scale questionnaire from 131 banking staff. The results show a significant and positive relationship between sector and withdrawal behavior. Moreover, the results confirm that private-sector banking staff show higher levels of WBP and WBS than the public sector. Results of the study suggest that both sectors' top management ought to consider some strategic human resource management practices to retain their employees, especially private licensed banks must consider more impressive supervision and motivation strategies to reduce employee turnover because private sector banking staff have a higher level of withdrawal behavior than public sector banking staff.

COMPARATIVE ANALYSIS OF SERVICE QUALITY IN PUBLIC SECTOR BANKS AND INDIA POST’S FINANCIAL SERVICES USING SERVQUAL MODEL

Financial services which often involve sensitive transaction such as savings, insurance, loans and investments need to be high in service quality to build trust and credibility among customer. In financial transactions customers need to feel secure that their investments are managed with care and expertise. Service quality of financial services plays a fundamental role to the functioning of modern economies. The present study compares the service quality of Public Banks and India Post Office Financial Services using the SERVQUAL model which assesses five dimensions of service quality: tangibles, reliability, responsiveness, assurance and empathy. The present study employs a cross-sectional survey approach with data collected from 200 respondents through a structured questionnaire. The findings of the study reveal significant differences in service quality perceptions between the public banks and India Post’s financial services. Public Banks are perceived to offer better tangibles and higher levels of empathy compared to India Post which indicates superior physical facilities and more personalized customer services by public banks. However no significant difference in reliability, responsiveness and assurance between the two service providers is found. The study finds a significant positive relationship between service quality dimensions and overall customer satisfaction which highlights the importance of tangibles and empathy dimension in enhancing customer satisfaction. The research intends to shed light on the differences in service quality of public banks and India post. The recommendations based on the study result will help both the service providers to understand customer priorities and enhance their satisfaction.

The role of diversification in stabilizing bank credit over the business cycle

AbstractWe investigate whether diversification stabilizes bank lending cyclicality on a sample of 25 conventional and 18 Islamic banks from Malaysia spanning 2008 to 2021. Our findings reveal that both bank types are nonlinearly procyclical during economic expansions, with Islamic banks also exhibiting countercyclical behavior during economic contractions. Diversification is positively associated with credit growth in conventional banks and Islamic bank subsidiaries, and it amplifies procyclicality across all Islamic bank types. Conversely, loan concentration stabilizes credit in Islamic banks. These results are robust to an alternative credit measure. Further analyses indicate that public and foreign banks are procyclical during booms and countercyclical during busts. At the same time, diversification heightens procyclicality in private, local, and foreign banks, whereas concentration mitigates it in public and local banks.

BANKING ON GREEN: THE MODERATING ROLE OF BANK TYPE IN GREEN HUMAN RESOURCE MANAGEMENT AND CORPORATE SUSTAINABILITY

This study examines the moderating role of bank type in the relationship between green human resource management and corporate sustainability, based on the AMO (Ability-Motivation-Opportunity) theory. Both quantitative and qualitative methods were adopted in the study. A 5-point Likert-type questionnaire was used to collect data from both public and private banks. The study's sample consisted of participants holding various positions in the banking sector. A total of 151 participants responded to the questionnaire. The survey data were analyzed and interpreted using IBM SPSS Statistics 26.0 and PROCESS Macro (Study 1). To support the quantitative study, content analysis was conducted by coding the sustainability reports of the same banks. The findings suggest that both private and public banks can benefit from implementing GHRM initiatives, albeit with some differences based on their organizational characteristics.

“Impacts of neo-banks on North African migrants’ remittances and financial inclusion”

This study examined remittance trends and financial institution preferences among North African migrants in Europe and assessed neobanks' potential to foster financial inclusion and cost reductions. The main objetive was to explore how neobanks can alleviate economic pressures on North African migrants and help achieve the World Bank Group's goal of reducing remittance costs to 5 % and the UN-SDG target of 3 %. Exploratory in nature, both surveys and interviews were used for data collection. The sample consisted of 64 North African migrants from Morocco, Tunisia, and Algeria (North Africa) residing in France, Spain, and Italy (EU). Key findings revealed that North African migrants had diverse remittance behaviors, with varying frequencies and amounts sent home. Trust in traditional banks remained high due to familiarity, cultural norms, and accessibility issues in rural areas. However, neobanks offered significant cost savings, with potential annual savings ranging from €30 to €134 depending on the monthly remitted amount that ranges between a €100 and a €1000 . Adoption of neobanks was higher among younger, and digitally literate migrants with better access to technology. Barriers to wider adoption of neobanks included limited digital and financial literacy, lack of necessary technology in home countries, and cultural resistance to change. High regulatory and compliance costs for traditional banks also contributed to inflated remittance fees. To address these issues, the paper recommends enhancing market competition, improving access to new payment technologies, encouraging larger remittances through incentives, learning from successful public bank models like France's La Banque Postale, and fostering financial literacy and digital inclusion. Additionally, it suggests building trust and cultural sensitivity, investing in robust cybersecurity measures, and developing offline transaction capabilities to increase accessibility for migrants in remote areas.

Impact of Core Banking Solutions in Public Sector Bank comparison with HDFC Bank

A study has been analysed the “Impact of core banking solutions in public sector bank comparison with HDFC bank.” There is no significant relationship between customers perception towards dimensions of service quality of core banking solutions offered by public sector and private banks. A method was used to random sample was conducted on 2 respondents selected from Bhagalpur district and the primary data was collected from 60 respondents (customers) of core banking solutions, public sector and HDFC banks selected from Bhagalpur district. In order to draw the conclusion, the primary data collected through interview schedule from the customers of core banking, public and sector banks comparison with HDFC bank and analysed with the help of statistical tools. The study reveals the respondents positively view about the core banking services offered by public and HDFC bank respondents positively view about the customers using selected channel of core banking services towards public bank and HDFC bank.

The Effect of the Current Expected Credit Loss Approach on Banks’ Lending during Stress Periods: Evidence from the COVID-19 Recession

ABSTRACT In the wake of the financial crisis, policymakers expressed the concern that the incurred loss model delays loan loss recognition to economic stress periods and thereby exacerbates banks’ lending contraction during these periods. Addressing this concern, the FASB issued Accounting Standards Update 2016-13, which requires large public banks to accrue for loan losses using the current expected credit loss (CECL) approach starting in January 2020. We hypothesize and find that banks that adopted CECL prior to the COVID-19 pandemic increased loan loss provisions and reduced loan growth during the accompanying recession more than other banks. The lending contraction is stronger for adopting banks with low regulatory capital and low loan impairment and is primarily driven by commercial loans. Lastly, we find that counties in which CECL-adopting banks have higher market share experience larger increases in unemployment rates during the recession and slower subsequent recoveries. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: E32; G21; G28; M41; M48.

A non-linear Lasso and explainable LSTM approach for estimating tail risk interconnectedness

ABSTRACT Tail risk inter-connectivity is a significant aspect and a risk indicator that should be focused on. Many of the previous works have shown potential non-linearity in tail risk contagion. With the recent advancements in deep learning, Long-Short Term Memory (LSTM) networks have played an important role in sequential data prediction. We experiment with LASSO-based neural networks and interpretative LSTM model along with other machine learning approaches for investigating tail risk interconnectedness among the public banks of Japan. We also investigate the risk reception from large overseas banks in United States finding that medium-sized banks are more likely to receive international risks. Our studies show that LSTM-based model is an excellent fit for the scenario and total connectedness goes up during an economic crisis. The banks having larger market capitalization are more prone to emission and reception of tail risks. This is accompanied by exhibiting the impact of some major economic distresses on Japanese banking system. These results provide important information to regulators and policy makers.

Exploring customer retention dynamics: A comparative investigation of factors affecting customer retention in the banking sector using mediation-moderation approach

The purpose of this research is to explore the impact of service quality, customer trust, and cultural disparities on customer satisfaction within the banking sector. Additionally, the study examined the mediating effect of customer satisfaction and the moderating effect of financial technology. Data for this investigation were gathered from customers utilizing services offered by public banks in Pakistan and China. The analysis was conducted using the Smart-PLS software, with 281 samples from Pakistan and 312 samples from China being included in the study. Results show that service quality, customer trust, and cultural differences positively affect customer satisfaction in the context of Pakistan and China. Results also reveal that service quality and customer trust have a positive effect on customer retention behavior in China, but customer trust has an insignificant impact on customer retention behavior in Pakistan. Analysis specifies that customer satisfaction positively mediated the relationship between service quality, customer trust, cultural differences, and customer retention behavior in Pakistan and China. More importantly, financial technology moderated the relationship between customer satisfaction and customer retention behavior, but it was insignificant in the context of China and Pakistan. The study seeks to provide significant insights for strategic decision-making and improve customer relationship management techniques in the dynamic field of financial services by including mediating and moderating elements.

Impact of somatic complaints on the mental health of bank sector employees: An empirical study

Somatic complaints refer to bodily symptoms that people encounter that don't have obvious biological origins, such as headaches, digestive issues, and musculoskeletal discomfort. There is a scarcity of research explicitly concentrating on the banking industry, despite prior studies looking at the connection between somatic symptoms and mental health in a variety of professional circumstances. This study explores somatic symptoms' impact on banking sector employees' mental health. The research initiative intends to collect quantitative data through questionnaires using a mixed methods approach to determine the incidence and severity of somatic symptoms experienced by bank personnel. Questionnaires (n=196) were distributed amongst different public and private banks of Southern Punjab. The data was analyzed using a reliability test, linear regression model, and correlation to find the relation between somatic complaints and mental health issues. The results show that there is a positive relationship between somatic complaints and mental health issues, i.e., a person having somatic complaints will also suffer from mental health issues, hence, satisfies the research hypothesis. Moreover, according to the study, greater levels of somatic complaints among workers in the banking industry are correlated with higher levels of stress, anxiety, and depression. The association between somatic symptoms and mental health was also examined with respect to potential moderating factors such as company culture, workload, and job satisfaction. In a nutshell, enhancing an employee's psychological health may benefit their work happiness, productivity, and overall organizational performance.

Bank intermediation efficiency and liquidity risk in Egypt: a two-stage non-parametric analyses

This is a pioneering study that undertakes a comparative analysis assessing the annual intermediation efficiency of public versus private banks in Egypt. Moreover, liquidity risk is a major threat facing banks in their efforts to sustain financial stability. Thus, this study is the first to model the determinants of liquidity risk in public and private banks in Egypt while examining the impact of banks’ intermediation efficiencies on their liquidity risk levels. The study employs advanced nonparametric econometric approaches on a sample of Egyptian public and private banks from 2014 to 2022. The data envelopment analysis is used in estimating banks’ intermediation efficiency scores, while the quantile regression analysis is applied to examine the impact of bank intermediation efficiency on liquidity risk under different liquidity risk quantiles. The findings indicate that public banks show consistent superiority in terms of their financial intermediation efficiency levels compared to private banks. Moreover, the paper findings demonstrate the negative significant relationship between bank intermediation efficiency and liquidity risk while highlighting the higher significant positive impact of intermediation efficiency on reducing the liquidity risk of banks that are characterized by undertaking high liquidity risk levels. Furthermore, contrary to general assumptions, this study’s findings demonstrate that the significance of micro- and macro-level determinants of a bank’s liquidity risk is dependent on its prevailing liquidity risk level. Hence, the positive impact of equity capital, asset concentration, size, and growth in gross domestic product and the negative effect of asset quality on bank liquidity risk vary under banks’ different liquidity risk quantiles.

Transfusion of allogenic cord blood to patients with multiple myeloma: safety analysis and influence on the immunophenotype of blood lymphocytes in the early period

Severe immune dysfunction occurs in the majority of cancer patients. One of the methods for overcoming immune disorders is transplantation of peripheral blood hematopoietic stem cells, both autologous and allogeneic, and transfusion of allogeneic natural killer cells (NK cells). Umbilical cord blood is a known source of not only hematopoietic stem cells (HSCs) but also NK cells, characterized by the rapid availability of blood samples from public cord blood banks. Purpose of the study: to analyze the safety of simultaneous transfusion of three allogeneic cord blood to patients with relapsed/refractory multiple myeloma in the early period (7 days after administration), and also to study the response of subpopulations of peripheral blood lymphocytes of patients to this intervention. The pilot study included 10 patients (7 men and 3 women) with relapsed/refractory multiple myeloma who had previously received more than 3 lines of therapy. The age of the patients was 59.4±3.4 years; all of them received a single transfusion of three allogeneic samples of umbilical cord blood with an average dose of leukocytes of 60.50±8.2 × 108 (NK cells – 4.36±1.2 × 108) per one patient. A total of 30 samples of umbilical cord blood, alloreactive for KIR receptors of the receptor-ligand type, were transfused. The selection of HSCs concentrates was carried out in the umbilical cord blood bank of the Dynasty Medical Center. Before transfusion of umbilical cord blood, patients received cyclophosphamide 5 mg/kg. After transfusion, patients received five subcutaneous injections of IL-2 (roncoleukin) in the amount of 1 million units per day. Observation at the time of assessment of preliminary results: 7 days after transfusion. Analysis of the immunophenotype of patient lymphocytes was studied twice: on the day of transfusion before the start of the protocol and 7 days after transfusion of umbilical cord blood. No early adverse reactions to transfusions were observed. Simultaneous transfusion of three allogeneic cord blood to patients with relapsed/refractory multiple myeloma is a safe procedure. There are no adverse reactions, serious adverse events, or significant reactions/changes in the immunophenotype of patient lymphocytes in the early observation period within 7 days after the intervention.

Quartet of Sustainable Job Security, Job Performance, Organizational Commitment, and Motivation in an Emerging Economy: Focusing on Northern Cyprus

High-performing employees are essential for an organization to achieve its goals and gain a competitive advantage. Hence, human resource factors are crucial drivers of an organization’s success. These factors include organizational commitment, which is an employee’s sense of belonging to an organization; motivation, which pushes employees to act in line with the organization’s goals; perceived job security; and sustainable job performance. In particular, job security, including excess job security, has significant effects on sustainable job performance, and policymakers and managers must continuously monitor this relationship via their employment policies. However, the legal and social dimensions of employment policies lack clarity, particularly in developing countries, affecting the development of sustainable economic and social structures. This study focuses on the public and private banking sectors of Northern Cyprus, which operate in a developing economy and cannot provide a sustainable political–social work balance. It analyzes and separately compares data collected from 582 public- and private-sector bank employees, examining the mediating effects of organizational commitment and motivation on the relationship between perceived job security and sustainable performance. The study found that job security positively affects sustainable job performance, with organizational commitment and motivation positively mediating this relationship. Moreover, the positive effects of job security on organizational commitment and motivation and, hence, on sustainable job performance differ across the public and private sectors. The findings of this study can provide a reference for labor employment policies in developing countries aiming to build a sustainable economic structure.

Efficiency assessment of cord blood banking and compatibility with delayed cord clamping.

There is debate whether delayed umbilical cord clamping following delivery, the current gold standard, affects the proportion of cord blood units (CBU) suitable for public cord blood banking. This study was designed to assess the impact of delayed cord clamping on the number of CBU suitable for therapeutic uses. To minimize variability, data from the four most active collection centers within the Programa Concordia (Spain) were included. Data on CBU collected in utero from mothers following normal vaginal deliveries from July 2018 to December 2021 were analyzed. The weight of the collection bags (as a surrogate of volume) and total nucleated cell (TNC) count were analyzed according to three defined clamping times: 30 s, 60 s and ≥120 s. The CBU were stratified as suitable for stem cell transplantation (≥110 g and ≥1,500×106 TNC/unit) or other clinical applications (≥100 g but TNC count below the threshold). - There were 131 (18%), 548 (76%), and 40 (5%) CBU collected at 30 s, 60 s and ≥120 s, respectively. The median weight of the CBU decreased gradually with time, with a significant difference between units collected when the cord was clamped at 30 s or 60 s (p=0.036), so significantly fewer CBU met the minimal weight criterion (100 g) at 60 s than at 30 s (p=0.002). However, this was not reflected by the TNC available, resulting in non-statistical differences in CBU eligible for banking between these times. The major predictor of collection success was the neonate's birth-weight. -Despite decreases in the volume of cord blood collected when cord clamping at 30 s or 60 s, TNC count is maintained resulting in similar numbers of CBU eligible for banking. The different clamping delays investigated in this study are, therefore, compatible with public cord blood banking needs.

An Analysis of Maturity Patterns and Interest Rate Risk in Public and Private Banks in India: an Asset Liability Management Approach

An Analysis of Maturity Patterns and Interest Rate Risk in Public and Private Banks in India: an Asset Liability Management Approach

What Makes a Smart Bank: The Case of Brde, a Last-Mile Subnational Development Bank in Brazil

Development banks are considered mission-oriented financial institutions that must act to fill gaps and market failures, supporting innovation with long-term financing in order to play a fundamental role in smoothing the risks associated with boom and bust cycles. . The existence and role of public development banks have been discussed for more than a century. Thus, this work proposes a case study with the analysis of the Subnational Development Bank - BRDE, in which there is a reference based on authors who discuss regional development and, subsequently, the case of BRDE, with the aim of describing the operation of a small bank in an emerging economy, its strengths and challenges. Therefore, it was possible to conclude that banks that have, at the same time, clarity of vision and mission and alignment of programs, flexibility to adjust to economic and social reality, solid financial results, robust governance attributes and autonomy - professional and collegial governance multilevel that increases the costs of both undue political pressure and bad credit decisions. From a financing point of view, the bank stands out for its technical capacity, which are critical but are important institutions to reinforce that its capillarity and knowledge of the context and local markets are useful for development. Thus, these banks provide financial instruments to expand financing at local and micro-regional levels, directly or through commercial banks and cooperatives. KEYWORDS: Regional development, banks, financial institutions, BRDE.