Title: Bank group-wise comparison of loan recovery performance of commercial banks in India

Authors: Robin Thomas; Shailesh Singh Thakur

Addresses: Faculty in Management, Sant Gahira Guru University, Surguja, Chhattisgarh, India ' Faculty in Management, Institute of Business Management and Research, IPS Academy, Indore, India

Abstract: In scholarly banking literature, the non-performing loans are associated with bank runs, bank failure and eventual management quality of banks. Non-performing loans have both exogenous and endogenous attributions in banking literature. However, macroeconomic conditions in an economy being ceteris paribus, empirical literature finds support for the 'bad management' hypothesis attributing high degree of non-performing loans to individual administration of the banks. This paper empirically analyses the non-performing assets indicators related to loan recoveries of the four commercial bank groups in Indian banking sector and compares the divergences in those indicators using ANOVA and GLS panel data regression model and attributes these divergences to the management quality of the bank groups.

Keywords: loan recovery; non-performing loans; bank management; panel data regression; dummy variable regression.

DOI: 10.1504/IJBEX.2021.113435

International Journal of Business Excellence, 2021 Vol.23 No.2, pp.139 - 152

Received: 04 Mar 2019
Accepted: 30 May 2019
Published online: 05 Mar 2021 *

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