Title: Modelling credit risk management and bank's profitability

Authors: Monika Gupta; Tarika Singh Sikarwar

Addresses: Prestige Institute of Management, Airport Rd, D.D. Nagar, Deen Dayal Nagar, Gwalior, Madhya Pradesh 474020, India ' Prestige Institute of Management, Airport Rd, D.D. Nagar, Deen Dayal Nagar, Gwalior, Madhya Pradesh 474020, India

Abstract: The research work is done to understand the effect of 'capital adequacy', 'leverage' and 'debt-equity ratio' on the 'profitability' of Indian banks. Ten years' data was taken for the study of the top ten banks of India. Multiple regression analysis is used to check the causal relation. The results are contrary to what theory says. Further time series analysis has been used to confirm the model.

Keywords: capital adequacy; leverage; debt-equity ratio; credit risk management; profitability.

DOI: 10.1504/IJEBANK.2020.109663

International Journal of Electronic Banking, 2020 Vol.2 No.2, pp.170 - 183

Received: 20 Nov 2019
Accepted: 05 Dec 2019
Published online: 18 Sep 2020 *

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