Umamaheswari, R and Arun Prakash, P (2020) Bank-Specific and Macroeconomic Determinants of Liquidity of Public and Private Sector Commercial Banks in India. Our Heritage, 68 (30). pp. 4454-4460. ISSN 0474-9030

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Abstract

This study is a maiden attempt to determine the bank-specific and macroeconomic variables influencing the liquidity of public and private sector commercial banks in India. For the purpose of this study, 20 public sector banks and 19 private sector banks have been considered for the period from 2005 to 2019. Credit to Deposit Ratio and Current Assets to Total Assets are proxied as measures of explained variable. Capital Adequacy Ratio, Deposits to Total Assets, Return on Assets, Return on Equity, Net Interest Margin, Operating Profits to Total Assets, Non-Performing Assets to Total Assets are proxied as
bank-specific determinants. Gross Domestic Product, Consumer Price Index and Real Interest Rate are proxied as macroeconomic variables. The results of Multiple Regression Analysis showed that explanatory variables such as Capital Adequacy Ratio, Deposits to Total Assets, Return on Assets, Non-Performing Assets to Total Assets, Gross Domestic
Product, Consumer Price Index and Real Interest Rate are the major factors determining the liquidity of public and private sector commercial banks in India.

Item Type: Article
Uncontrolled Keywords: Liquidity, Capital Adequacy Ratio, Deposits to Total Assets, GDP and Consumer Price Index
Divisions: PSG College of Arts and Science > Department of Commerce
Depositing User: Mr Team Mosys
Date Deposited: 22 Mar 2022 08:29
Last Modified: 22 Mar 2022 08:29
URI: http://ir.psgcas.ac.in/id/eprint/651

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