AN EXPLORATORY ANALYSIS ON THE IMPACT OF INSTITUTIONAL-SPECIFIC CUM MACROECONOMIC INDICATORS ON THE NON-PERFORMING ASSETS OF SBI AND ASSOCIATE BANKS IN INDIA

Abstract
The research aims at analyzing the influence of 5 industry-specific and 4 macroeconomic factors on the non-performing assets of SBI and Associate Banks in India by collecting the relevant data for a period of 10 years ranging from 2006-07 to 2015-16. The results of multiple correlation analysis ensured the positive correlation between Repo Rate (RR), Reverse Repo Rate (RRR), Unemployment Rate (UR) and Non-Performing Assets (GNPATA) whereas the variables such as Capital Adequacy Ratio (CAR), Cash Reserve Ratio (CRR) Prime Lending Rate (PLR), Money Supply (MS) and Gross Domestic Product Growth Rate (GDPGR) showed a negative impact on the non-performing assets. The Granger Causality Test confirmed the association of CAR, CRR, RRR, IR, MS, UR and GDPGR with the non-performing assets whereas the remaining variables such as PLR and RR portrayed a negative relationship with the non-performing assets. Further the Johansen Co-integration Test results witnessed that all the institutional-specific and macroeconomic variables are co-integrated with the non-performing assets of SBI and Associate Banks in India.

Authors
S. Gokul Kumar1, M. Jayanthi2, K. Subramani3, A. Prasanth4
Bannari Amman Institute of Technology, India1, PSG College of Arts and Science, India2, Bannari Amman Institute of Technology, India3, Bannari Amman Institute of Technology, India4

Keywords
Institutional-Specific, Macroeconomic, Non-Performing Assets, SBI, Associate Banks
Published By :
ICTACT
Published In :
ICTACT Journal on Management Studies
( Volume: 3 , Issue: 4 )
Date of Publication :
November 2017
DOI :

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.