Public Sector Banks Research Articles

Customers Awareness and Knowledge level towards Digital payment of Public and Private Sector Banks at Thoothukudi District

In today's rapidly digitizing financial landscape, understanding the awareness and knowledge levels of customers regarding digital payment methods is paramount. This study aims to assess and compare these levels among various gender categories and age groups, shedding light on potential disparities. Key objectives include promoting financial inclusion, mitigating security risks, and enhancing customer satisfaction. The implications of this research extend to policymakers, financial institutions, and businesses navigating the dynamic world of digital payments, where informed decision-making is essential for success and societal progress.

Lending to Priority Sector in India: Some issues of Credit and NPAs of Public and Private Sector Banks

Priority sector lending has been an essentialfeature of India’s credit policy.Priority sector lending has been in use for long, as an instrument to channelize credit to strategic sectors of the economy that have been marginalized by institutionalised credit delivery system. This programme ensures that the necessary bank credit be allocated forstrategically importantsectors of the economy.Priority sector lending was imbibed in the lending policy for the commercial banks in response to shortages of output in agricultural and industrieswhich caused severe imbalances in the economy after the independence and partisan of the country. Hence, the priority sector lending was used as a lively device for directing the credit flow to the neglected entities with a purpose to re-establish sectoral equilibrium. The program requires commercial banks to extend loans to strategic sectors: agriculture, exports, small business, housing, and economically weak sections of the society. Priority sector lending is still relevantfor economies like India as small scale entities have been backbone of our economy being employing the large section of population of the country. The present study is an attempt to analyse the status of credit allocation and NPAs of priority sector lending of public sector banks and private sector banks considering a period of 15 years from 2004-2005 to 2019-2020.

A COMPARATIVE ANALYSIS ON ESG SCORES OF SELECTED PUBLIC AND PRIVATE SECTOR BANKS IN INDIA

The framework of ESG is covering an important aspect from the view of government and investors. This study tries to analyze and compare the ESG score of public and private sector banks. Along with overall ESG score a comparison is also made between the different area which covers ESG ( i.e., Environmental, Social, Governance). Top Six public sector banks and top six private sectors banks on the basis of ESG score given by CRISIL in India. Single factor ANOVA test have been used to compare the ESG scores .

The Impact of Marketing Financial Services on Value Behaviors Through Loyality and Satisfaction of Customer of Arab Bank in Jordan

The study aimed to know the relationship between marketing of financial services in public sector banks with special reference to Arab bank in Jordan. The analysis of the data acquired from the customers of the Arab bank in Jordan provides meaningful insights into Perceived financial service quality, Perceived financial service orientation, marketing mix strategy, customer satisfaction, customer loyalty and Value in behavior. Further, the research investigates the direct and indirect association among the study variables. The preliminary analysis discloses that the means of all the study variables. It was found that the Perceived financial service Quality and Marketing mix strategy has a significant positive association with Value in behavior. Further, Perceived Financial service quality has a positive significant association with customer satisfaction and customer loyalty in the Arab bank in Jordan. Additionally, Perceived financial service orientation has a positive significant relationship with customer satisfaction and customer loyalty. Further, a Marketing mix strategy has a positive significant relationship with customer satisfaction and customer loyalty. At last, customer satisfaction and customer loyalty have a positive significant relationship with Value in behavior. Further, it was found that perceived financial service orientation has a negative significant relationship with Value in behavior. Besides, Customer satisfaction and Customer loyalty partially mediate the relationship between Perceived financial service quality and Value in behavior. Likewise, Customer satisfaction and customer loyalty cannot mediate the relationship between Perceived financial service orientation and Value in behavior because hypothesis is rejected. Therefore. Finally, Customer satisfaction and Customer loyalty partially mediate the relationship between Marketing mix strategy and Value in behavior were partially supported.

The impact of Credit Suisse takeover on Indian banking and financial services sector stocks: an event study analysis

PurposeThe present study aims to comprehensively examine the impact of the Union Bank of Switzerland (UBS) takeover of Credit Suisse on the banking and financial services sector in the Indian stock market. To fully comprehend the impact of the event, the study separately investigates the response of private sector banks, public sector banks, overall banking companies and financial services companies to the takeover of the second-largest financial institution in Switzerland.Design/methodology/approachThe study employs event study methodology, using the market model, to analyze the event's impact on Indian banking and financial services sector stocks. The data consists of daily closing prices of companies included in the Nifty Private Bank Index, Nifty PSU Bank Index, Nifty Bank Index and Nifty Financial Services Index from the National Stock Exchange (NSE). Furthermore, cross-sectional regression analysis has been conducted to explore the factors that drive abnormal returns.FindingsThe empirical findings of the study suggest the event had a heterogeneous impact on the stock prices of Indian banks and financial services companies. While public sector banks experienced a significant negative impact on select days within the event window, the overall Indian banking sector and financial services companies also witnessed notable declines. In contrast, Indian private sector banks were relatively resilient, exhibiting minimal effects. However, the cumulative effect is found to be insignificant for all four categories across different event windows. The study also observed that the cumulative abnormal returns (CARs) were significantly influenced by certain variables during different event windows.Originality/valueTo the best of the authors' knowledge, the present study is the earliest attempt that investigates the impact of the UBS takeover of Credit Suisse on the Indian banking and financial services sector using event study methodology and cross-sectional regression model.

A Study Of Public Sector Bank With Reference To Corporate Governance

Corporate governance, in particular, has become a focus of market and public attention. Confidence was shattered by a series of high-profile bankruptcies because of a lack of effective action in which corporate governance was an important factor. Corporate Governance is the system through which all the activities of a company are monitored and controlled. The concept of Corporate Governance has been gaining importance and momentum all over the world. It has emerged as a means of achieving corporate excellence and a driving force for accomplishing much better performance, maximizing the stakeholder's wealth and corporate value. corporate governance affects the creation of wealth and its distribution to different pockets. Good governance is a source of competitive advantage among economies to attract international capital. Responsibility, transparency, fairness and accountability are the four pillars of strong corporate governance. Corporate Governance helps in forming a system in which a director holds the duties and responsibilities of the affairs of the Company. This study introduces the corporate governance disclosure practices of the State Bank of India(a Public Sector Bank listed in the BSE Top 100 )

A Study on Impact of Merger and Acquisition on Financial Performance of Public Sector Banks: A Case Study on Bank of Baroda

This study looks at merger process that has happened in the Indian banking sector, this can be achieved through cost reduction and increasing revenue. This study also analysis the recent trends in banks regarding the merger of banking sectors, especially in trying to understand various motivations for merger and how merger affect financial performance and operational efficiency, The Banking sector has played very important role in the Indian economy. In India, the mergers & acquisitions are the important process in the banking industry to reduce cost of operating NPA’s and to increase the economies of scale till April 1, 2020 but now with the amalgamation of 10 public sector banks (PSB’s) into 4 mega banks, the number decreased to 12 PSB’s.

Impact of Mergers and Acquisition On Performance of Select Public Sector Banks in India

The Banking sector has been seen ongoing mergers & amalgamation in recent years. The Reserve Bank of India (RBI), the Central Government can create a scheme for the amalgamation of any nationalized bank with any other nationalized bank or banking sector in accordance with the banking companies Acts 1970 and 1980 (Acquisition and Transfer of undertaking). The banking industry has been experiencing major Merger and Acquisition in the recent years, with the number of global players emerging through successive Merger and Acquisition in the banking sectors. Only in today’s tough environment will large organizations thrive. Government banks are in bad condition following demonetization. A lot of government banks have incurred huge losses owing to bad loans, which the lenders have not been willing to recover because they have ruined their company due to a range of factors, including demonetization. The above study shows the impact of merger and acquisition on selected banks like Vijaya Bank, Dena Bank merge with Bank Of Baroda, Oriental Bank of Commerce and United Bank of India merged into Punjab National Bank, Syndicate Bank merged with Canara Bank, Andhra Bank and Corporation Bank merged with Union Bank Of India and Allahabad Bank merged with Indian Bank

A STUDY ON THE EVALUATION OF FINANCIAL PERFORMANCE OF POST- MERGER AND PRE-MERGER OF CANARA BANK USING EAGLE AND CAMEL MODEL

A STUDY ON THE EVALUATION OF FINANCIAL PERFORMANCE OF POST- MERGER AND PRE-MERGER OF CANARA BANK USING EAGLE AND CAMEL MODEL

Prospects and Challenges Faced by Indian Banks During The Implementation of CSR Activities

The purpose of this paper is to investigate what issues and challenges banks face while implementing CSR practices. The methodology employed is a conceptual approach, involving a cross-sectional study that qualitatively analyzes the CSR activities undertaken by Indian public sector banks. As the significance of Corporate Social Responsibility (CSR) has steadily grown, Indian corporate entities have come to recognize that the ultimate objective extends beyond merely generating profits. Instead, it encompasses the cultivation of trust and the development of a sustainable rapport with society. This article centers its attention on examining and evaluating the various facets and hurdles of CSR practices within the Indian banking industry. The practical implications of this research paper are significant. The insights presented can guide organizations in designing CSR programs based on their objectives, proactiveness, activity nature, characteristics, and potential benefits. Additionally, it sheds light on the opportunities and challenges faced by organizations in the context of CSR during a pandemic.

Scaling Up Banking Performance for the Realisation of Specific Sustainable Development Goals: The Interplay of Digitalisation and Training in the Transformation Journey

The main purpose of this study was to examine how digitalisation with a mediating role of training influences banking performance and further how banking performance helps in realisation of specific sustainable development goals (SDGs). Data were gathered from 402 employees from public, private, and foreign sector banks. Digital culture, digital technologies, and digital skillsets are the sub-scales of digitalisation. For training, three types of training (on the job training, off the job training, and special training) were considered. Banking performance was measured through balanced score card covering customer, financial, internal business process, and innovation and learning perspective. This study considered SDG1: eradication of poverty; SDG5: gender equality; and SDG8: economic growth and decent work. Partial Least Square-Structural Equation Modelling was used to examine relationship among digitalisation, training, banking performance, and the realisation of specific sustainable development goals (SDG1, SDG5, and SDG8). The results highlighted that digitalisation has a positive association with training and with banking performance (with β values of 0.692 and 0.531). The direct effect of digitalisation on banking performance (with β value is 0.316) was significant; however, the effect was enhanced when training was used as a mediating variable between digitalisation and banking performance (β: 0.367). Furthermore, the results suggest that banking performance has a positive association with realisation of specific SDGs (β: 0.867). In the designed model, it can be seen that the predictors (digitalisation and training) explained 61.1 percent of banking performance. This paper, by combining digitalisation and training with banking performance, provided an integrated approach to contribute towards the realisation of sustainable development goals (SDG1, SDG5, and SDG8). The final integrated model with digitalisation, training, and banking performance as predictors explained 75.6% of variation in exogenous variable, i.e., the realisation of specific SDGs. The results indicate an important role of digitalisation and training in scaling up banking performance for the realisation of specific SDGs.

Mapping Corporate Social Responsibility: Unveiling Compliance and Expenditure Trends in Public and Private Sector Banks (2013-2020)

This research report thoroughly and minutely examines the compliance of Corporate Social Responsibility activities through item-wise aggregate analysis of nominated public sector banks and private sector banks from 2013-20. Furthermore, the amount spent on different CSR activities in accord with the provisions of the Companies Act 2013 has been investigated. The study is vivid in nature and is based on secondary data. The researchers presented the results using tables and graphs.

Capital Adequacy and NPA Resilience in Public Sector Banks

Capital Adequacy and NPA Resilience in Public Sector Banks

NPAs in India's banks: trends and determinants

PurposeThis paper aims to analyse trends and determinants of NPAs in India's banks. It has empirically examined the bank-specific determinants of NPAs.Design/methodology/approachAn FE panel estimation of a sample of 44 banks was carried out for the post-crisis time period, from 2010 to 2020 to identify the bank-specific determinants of NPAs. The sample of 44 banks includes 20 PSBs, 19 private banks and 5 foreign banks. Separate FE estimation was also carried out to identify the drivers of NPAs in PSBs.FindingsThe determinant of NPAs during the post-crisis period suggests that faulty earning management and deterioration in loan quality have resulted in high NPAs in India's banks. The result is similar for PSBs as well.Research limitations/implicationsThe findings of the study suggest that the banks, especially the Public Sector Banks (PSBs) need to revisit their earning management strategies to maximise income and improve their loan quality in order to reduce the incidence of loan failure.Originality/valueThe paper contributes by empirically analysing the determinants of NPAs during the recent decade, between 2010 and 2020. Separate estimations have been carried out to understand whether the drivers of NPAs differ in the case of PSBs.

Comprehensive Analysis of Indian Public Sector Banks Financial Performance Using the TOPSIS Method

The government has recently undertaken the consolidation of multiple public sector banks. The primary motivation for conducting this research is to investigate this consolidation effort. The objective of this article is to identify the factors influencing the performance of public sector banks in India and explore the relationships between these factors and the performance of government-operated banks. Within this article, we will analyze financial data from all public sector commercial banks spanning an 11-year period, from 2009 to 2019. Both the system generalized method of moments (GMM) analysis and canonical correlation analysis (CCA) have been employed to assess the impact of determinants on the evaluation of public sector bank performance. The assessment of performance is carried out using the CAMEL framework, which encompasses Capital Adequacy, Assets Quality, Management Efficiency, Earnings, and Liquidity. It's worth noting that the government has recently undergone the consolidation of several public sector banks, which serves as the impetus for this study. The primary aim of this article is to ascertain the variables that shape the performance of Indian public sector banks and their interconnections. Within this research, we will scrutinize financial data from all public sector commercial banks over an 11-year span, spanning from 2009 to 2019. Both the utilization of the system generalized method of moments (GMM) analysis and canonical correlation analysis (CCA) have been deployed to examine how various determinants influence the evaluation of public sector bank performance. The assessment of performance has been conducted through the utilization of the CAMEL framework, an acronym representing Capital Adequacy, Assets Quality, Management Efficiency, Earnings, and Liquidity. This framework is widely employed for appraising the financial soundness of the Indian banking system. The financial well-being of public sector banks (PSBs) holds paramount importance for several reasons. Primarily, PSBs play a pivotal role in delivering financial services to the general populace, especially in rural and semi-urban regions where private banks may not have a significant presence. Consequently, the accessibility of financial services to a broad segment of the population directly influences their financial stability.

Comprehensive Analysis of the Financial Performance of Indian Public Sector Banks

Recently, the government consolidated numerous public sector banks. The basis for conducting this study is this. This article's goal is to pinpoint the variables that influence public sector bank performance in India as well as the connections between those variables and the performance of particular banks operated by the government. In this article, we will examine the financial information from all public sector commercial banks over an 11-year period (from 2009 to 2019). Both the system generalised method of moments (GMM) analysis and the canonical correlation analysis (CCA) have been used to analyse the effects of determinants on public sector bank performance assessment.. CAMEL, which stands for Capital Adequacy, Assets Quality, Management Efficiency, Earning, and Liquidity, has been used to assess performance. Several public sector banks have lately been consolidated by the government. The basis for conducting this study is this. This article's goal is to identify the variables that determine Indian public sector banks' performance as well as the connections between those variables and performance. In this study, we will examine the financial data from all public sector commercial banks over an 11-year period (from 2009 to 2019). Both the system generalised method of moments (GMM) analysis and canonical correlation analysis (CCA) have been employed to assess the influence of determinants on the performance measurement of public sector banks Performance has been assessed using the CAMEL framework, which stands for Capital Adequacy, Assets Quality, Management Efficiency, Earnings, and Liquidity. This framework is widely used to evaluate the financial system in India. For a number of reasons, the financial health of public sector banks (PSBs) is crucial.First and foremost, PSBs are essential in delivering financial services to the general population, particularly in rural and semi-urban areas where private banks might not be present. Therefore, the availability of financial services to a wide portion of the public has a direct impact on their financial health.Second, PSBs frequently serve as the primary lenders to important economic sectors like infrastructure, SMEs, and agriculture. As a result, their financial performance may have a big impact on how these industries grow and develop. Thirdly, PSBs frequently have government ownership and are subject to public scrutiny. As a result, one key indicator of their efficiency is their financial performance. Alternate Parameters taken as SBI, BOB, PNB, BOI, CANARA. Evaluation Parameter taken as The following financial performance indicators have been considered: net profit margin%, return on assets%, return on net worth%, interest income to total assets%, interest expenses to total assets%, and operating expenses to total. In August 2015, a target was set for PSBs to raise $110,000 crore from the markets by the years 2018-19. However, compared to this target, only Rs. 7,726 crore was raised between January 2015 and March 2017. Given the CCEA's assurance to prevent an excessive influx of banking equity issues in the market simultaneously, it appears impossible to achieve this goal by March 2019.DFS decided that additional capital injections will only be granted if specific PSBs met the performance standards stated in the MoUs with those PSBs (signed in February/March 2012). However, in practice, this was not done. According to Audit Report No. 28 of 2017 55, the MoU targets for some metrics decreased year over year while no specific targets were specified for others.

Merger of Indian Banks

In this study, we look at how merging Indian public sector banks has affected their ability to work together more efficiently. The purpose of this study is to determine whether this merger would really speed up India's economic development. Bank merger advantages have been analysed using many metrics, including CASA ratio, CRAR ratio, CET I ratio, and advance and deposit size. Net nonperforming asset ratios have also been monitored in order to assess asset quality. The consolidation of 10 public sector banks into 4 is an attempt to achieve size and geographic diversity via consolidation. The merger has unquestionably enhanced the merged entity's size, which has resulted in advantages such as lower operating costs and larger money placed by a greater number of consumers. Insolvent banks have been able to strengthen their financial footing and stability as a result of mergers. Capital has been injected into struggling state-owned banks, which will increase lending and buoy the economy.

A Comparative Study of Liquidity Management of Selected Public Sector Banks and Private Sector Banks in India

The services your bank provides to its business clients—known as liquidity management—enable them to take advantage of the interest on their checking and current accounts and pool money from several accounts. As a result, your corporate clients may effectively manage the daily liquidity of their companies. The paper compares and contrasts the liquidity management strategies of a few Indian banks from the public and private sectors. Five public sector banks—Punjab National Bank, Bank of India, Bank of Baroda, Union Bank of India, and State Bank India—and five private sector banks—ICICI, HDFC, AXIS, IDBI, and Kotak Mahindra Bank—have been taken for consideration during the 5-year period between 2018–19 and 2022– 2023. Comparisons of the liquidity management of public and private sector banks have been made using the Cash-Deposit Ratio (CDR), Investment-Deposit Ratio (IDR), and Credit-Deposit Ratio (CRDR). Keywords: liquidity Management, Public sector banks, private sector Banks, Cash-deposit ratio, investment deposit ratio, credit Deposit Ratio.

A STUDY ON INVESTORS PERCEPTION TOWARDS MUTUAL FUND WITH REFERENCE TO DK DISTRICT, KARNATAKA

Mutual fund represents a vehicle for collective investment. When we are participate in a mutual fund scheme Till 1986, the Unit Trust of India was the only mutual fund in India. Since then, public sector banks and insurance companies have been allowed to set up subsidiaries to undertake mutual fund business. In 1992, the mutual hand industry was opened to the private sector, and a number of private sector mutual funds have been set up. Investment risks such as trading volume, settlement risk, liquidity risk, default risk, and principal loss risk are present when purchasing mutual fund units. The goal of investing is to generate a steady, risk-free return. There are several investment options available in our nation, ranging from shares and debentures to insurance coverage. Mutual funds are a new kind of investing that has a lot of potential because they offer diverse investing options, regular returns, and low risk. It is, however, incredibly ignorant of the people who live in our nation. Many have been compelled to refrain from such forms of investing or even choose not to because of their lack of understanding of the subject. The purpose of this study is to examine the degree of knowledge that Indian investors have regarding mutual funds and to suggest more effective ways to increase that knowledge. KEYWORDS: Mutual fund, satisfaction, investment, investment schemes, investor awareness and factors influencing choice of investment

A COMPARATIVE STUDY ON PERFORMANCE EVALUATION AND NON-PERFORMING ASSETS OF PUBLIC AND PRIVATE SECTOR BANKS IN INDIA

A COMPARATIVE STUDY ON PERFORMANCE EVALUATION AND NON-PERFORMING ASSETS OF PUBLIC AND PRIVATE SECTOR BANKS IN INDIA