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Determinants of Non-Performing Assets in India - Panel Regression

Author

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  • Saikat Ghosh Roy

    (Axis Bank Limited, India)

Abstract

It is well known that level of banks? credit plays an important role in economic developments. Indian banking sector has played a seminal role in supporting economic growth in India. Recently, Indian banks are experiencing consistent increase in non-performing assets (NPA). In this perspective, this paper investigates the trends in NPA in Indian banks and its determinants. The panel regressions, fixed effect allows evaluating the impact of selected macroeconomic variables on the NPA. The Panel regression result indicates that the GDP growth, change in exchange rate and global volatility have major effects on the NPA level of Indian banking sector.

Suggested Citation

  • Saikat Ghosh Roy, 2014. "Determinants of Non-Performing Assets in India - Panel Regression," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 2(3), pages 69-78.
    • Handle: RePEc:ejn:ejefjr:v:2:y:2014:i:3:p:69-78
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    References listed on IDEAS

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    Cited by:

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    2. Oleksandra Chmel & Valentyna Sinichenko & Daryna Pustovoit & Anton Shmihel, 2019. "Meta-Analysis: Effect of central bank’s key policy rate on banks’ lending interest rates," Modern Economic Studies, Kyiv School of Economics, vol. 2(1), pages 2-11.
    3. Pramahender, 2022. "Critical Perspectives to Non-performing Assets of Indian Banks, Shrinking Balance Sheet, Challenges and Way Ahead," FIIB Business Review, , vol. 11(2), pages 130-136, June.
    4. Alias Mat Nor, 2015. "Impaired Financing Determinants of Islamic Banks in Malaysia," Information Management and Business Review, AMH International, vol. 7(3), pages 17-25.
    5. Tarika Sikarwar & Anivesh Goyal & Harshita Mathur, 2020. "Household Debt, Financial Inclusion, and Economic Growth of India: Is it Alarming for India?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(3), pages 229-248, February.
    6. Dua, Pami & Kapur, Hema, 2018. "Macro stress testing and resilience assessment of Indian banking," Journal of Policy Modeling, Elsevier, vol. 40(2), pages 452-475.
    7. Shailesh Rastogi & Bhakti Agarwal, 2023. "Transparency and disclosure (TD) and valuation of Indian banks," Bank i Kredyt, Narodowy Bank Polski, vol. 54(5), pages 519-540.
    8. Marco Alberto Nunez Ramirez & Roger Alejandro Banegas Rivero & Cecilia Lorena Velarde Flores & Irma Guadalupe Esparza Garcia & Sacnicte Valdez del Rio & Maria Nelida Sanchez Banuelos & Altayra Geraldi, 2020. "Organizational Culture and Knowledge Management: Evidence from Bolivia and Mexico," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(3), pages 249-265, March.

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