Gokul Kumar, S and Jayanthi, M and Prasanth, A (2017) A Study on the Impact of Institutional-Specific and Macroeconomic Indicators on the Non-Performing Assets of New Private Sector Banks in India. International Journal of Latest Technology in Engineering, Management & Applied Science, VI (VII). pp. 125-132. ISSN 2278-2540

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Abstract

The research aims at analyzing the influence of
institutional-specific and macroeconomic indicators on the nonperforming assets of 7 new private sector banks in India for a period of 12 years from 2004-05 to 2015-16 using the econometric tools such as descriptive statistics, multiple correlation,augmented dickey-fuller test, granger causality and johansen cointegration test. The multiple correlation results portrayed a positive relationship for Gross Domestic Product Growth Rate (GDPGR) and Unemployment Rate (UR) whereas the Inflation Rate (IR) and Money Supply (MS) showed a negative relationship with the Gross Non-Performing Assets to TotalAdvances (GNPATA). The results of Augmented Dickey Fuller Test denote that the selected study variables don’t have Unit Root with them. The Granger Causality Test results confirmed that all the institutional-specific variables such as CAR, CRR, PLR, SLR, RR and RRR don’t granger cause the GNPATA. On the other hand, the macroeconomic variables such as IR, GDPGR and MS don’t granger cause whereas the UR alone doesgranger cause the GNPATA. Further the Johansen Cointegration Test results confirmed the co-integration of all the institutional-specific and macroeconomic variables with the GNPATA of New Private Sector Banks.

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Date Deposited: 02 Dec 2021 06:43
Last Modified: 02 Dec 2021 06:43
URI: http://ir.psgcas.ac.in/id/eprint/45

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