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Asian Journal of Research in Social Sciences and Humanities
Year : 2017, Volume : 7, Issue : 4
First page : ( 366) Last page : ( 379)
Online ISSN : 2249-7315.
Article DOI : 10.5958/2249-7315.2017.00291.X

Do Factors Determining Bank NPAs Differ According to the Bank Ownership Type?: Evidence from Indian Commercial Banks

Kulkarni Lalitagauri1,2, Pardeshi Shefali3

1Assistant Professor, Gokhale Institute of Politics and Economics, Pune, India, lalitagkulkarni@gmail.com

2Vaikunth Mehta National Institute of Co-operative Management, Pune, India

3Research Officer, Pune University, Pune, India, shefalipardeshi@gmail.com

Online published on 7 April, 2017.

Abstract

The present study aims at examining the macro-economic and bank-specific factors influencing the level of NPAs across various segments in commercial banks in India. The study focuses on the heterogeneity within the bank segments and the manner in which the various macro-economic and bank-specific factors determinants of NPAs act differently for each of the bank groups based on the ownership classification of commercial banks by the RBI. The bank level data of commercial banks in India classified into public, private and foreign banks according to the RBI classification is used for the analysis. The panel data regression method of analysis is applied to consider the heterogeneity among the banks. The period of study is from 2003 to 2015. The findings of the study reveal that the impact of factors determining NPAs differs in direction and intensity for different bank groups.

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Keywords

Non-performing loans, Non Performing Assets, Panel Regression Model, Commercial Banks.

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