The full text of this article
Determinants of credit risk in Indian banking sector: some panel results
by Sah Bittu; Amit Kumar Dwivedi
International Journal of Business Continuity and Risk Management (IJBCRM), Vol. 3, No. 2, 2012
Abstract: This paper empirically analyses fundamental factors affecting periodic addition to non-performing assets (NPAs or fresh slippage), taken as proxy for measuring credit risk, in Indian scenario. Panel regression on definitionally uniform data for five-year period, 2005-2009, on fresh slippage rate is performed for 70 banks to investigate variations on ownership dimension, aggressiveness, risk taking behaviour and performance of banks. The study indicates firstly, variations in fresh slippage is inversely related to efficiency of bank performance and directly related to capital-adequacy ratio, results being significant at 99% confidence interval; secondly, credit risk for foreign sector banks is higher than new generation banks for the given time period, result significant at 95% confidence interval. Standard Granger causality test based on quarterly fresh slippage data of a large public sector bank revealed that macroeconomic factor(s) gross domestic product (GDP) has significant implication on credit risk management of banks direction of causality established from GDP to NPA while no 'reverse causation' was observed.
Online publication date: Thu, 24-May-2012
is only available to individual subscribers or to users at subscribing institutions.
Go to Inderscience Online Journals to access the Full Text of this article.
Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.
Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Continuity and Risk Management (IJBCRM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable).
See our Orders page to subscribe.
If you still need assistance, please email email@example.com