Title: An empirical examination of the relationship between credit risk management, size, profitability, and ownership of Indian banks

Authors: Sirus Sharifi; Arunima Haldar; S.V.D. Nageswara Rao

Addresses: Faculty of Management, Kharazmi University, Tehran, Iran ' SP Jain Institute of Management and Research, Mumbai, Maharashtra, India ' School of Management, Indian Institute of Technology (IIT) Bombay, Powai, Mumbai, Maharashtra, India

Abstract: The study examines the impact of bank size, profitability, and ownership on excess capital for credit risk management (CRM) held by Indian banks. The model is estimated by panel regression method using data on 34 Indian banks during 2009 to 2016. The results suggest that size of Indian banks is related to excess capital held by them for managing credit risk. The positive relationship implies that large banks hold higher excess capital beyond the required minimum as per Basel norms. The study assumes importance in the context of significant changes in the institutional and regulatory framework of the Indian financial system.

Keywords: credit risk; excess capital; bank size; profitability; ownership; Indian banks.

DOI: 10.1504/IJMFA.2021.116229

International Journal of Managerial and Financial Accounting, 2021 Vol.13 No.1, pp.80 - 94

Received: 07 Feb 2020
Accepted: 08 Mar 2021

Published online: 01 Jul 2021 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article