Title: Impact of human capital on bank's failure prediction model: a study in the Indian context

Authors: Sukanya Wadhwa; Seshadev Sahoo

Addresses: Department of Accounting and Finance, Indian Institute of Management Lucknow, India ' Department of Accounting and Finance, Indian Institute of Management Lucknow, Room No.213, Chintan Block, Prabandh Nagar, Off-sitapur Road, Lucknow-226013 (UP), India

Abstract: This study investigates the link between bank failure and human capital efficiency in the Indian banking sector using generalised linear models. Analysing data from 238 Indian banks from April 1, 2010, to March 31, 2020, the research introduces new variables to enhance the existing bank failure prediction model. Key findings highlight the crucial role of managerial expertise in predicting bank failure, the preventive impact of higher liquidity, and the significance of top management quality. Notably, this study is the first to explore the relationship between bank failure and human capital in the Indian context, providing valuable insights for understanding and predicting banking stability.

Keywords: human capital; banking; accounting; corporate social responsibility; return on equity.

DOI: 10.1504/IJICBM.2026.151831

International Journal of Indian Culture and Business Management, 2026 Vol.37 No.2, pp.187 - 201

Received: 30 Jun 2023
Accepted: 09 Jan 2024
Published online: 23 Feb 2026 *

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