NPAs and profitability in Indian banks: an empirical analysis

Abstract As financial intermediaries, the commercial banks to a large extent depend on the performance of their lending as a critical source of earning. Due to increasing loan failures, the share of non-performing advances has increased substantially in recent years, thereby adversely impacting thei...

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Autores principales:	Santosh Kumar Das, Khushboo Uppal
Formato:	article
Lenguaje:	EN
Publicado:	SpringerOpen 2021
Materias:	NPAs Bank performance Bank profitability Indian banks Business HF5001-6182 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/c5b72a32f9244e6d9c22b1fc0a632efd
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spelling	oai:doaj.org-article:c5b72a32f9244e6d9c22b1fc0a632efd2021-11-07T12:15:14ZNPAs and profitability in Indian banks: an empirical analysis10.1186/s43093-021-00096-32314-7210https://doaj.org/article/c5b72a32f9244e6d9c22b1fc0a632efd2021-11-01T00:00:00Zhttps://doi.org/10.1186/s43093-021-00096-3https://doaj.org/toc/2314-7210Abstract As financial intermediaries, the commercial banks to a large extent depend on the performance of their lending as a critical source of earning. Due to increasing loan failures, the share of non-performing advances has increased substantially in recent years, thereby adversely impacting their profitability. The paper has examined the NPAs and profitability relationship by estimating the determinants of profitability of 39 public sector and private banks for the time period from 2005 to 2019. Using a set of bank specific and macroeconomic predictors of profitability, we found that NPA has negative impact on the rate of profit of the Indian banks. The study suggests that the banks must reduce their NPAs and operating cost to improve their profitability.Santosh Kumar DasKhushboo UppalSpringerOpenarticleNPAsBank performanceBank profitabilityIndian banksBusinessHF5001-6182FinanceHG1-9999ENFuture Business Journal, Vol 7, Iss 1, Pp 1-9 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	NPAs Bank performance Bank profitability Indian banks Business HF5001-6182 Finance HG1-9999
spellingShingle	NPAs Bank performance Bank profitability Indian banks Business HF5001-6182 Finance HG1-9999 Santosh Kumar Das Khushboo Uppal NPAs and profitability in Indian banks: an empirical analysis
description	Abstract As financial intermediaries, the commercial banks to a large extent depend on the performance of their lending as a critical source of earning. Due to increasing loan failures, the share of non-performing advances has increased substantially in recent years, thereby adversely impacting their profitability. The paper has examined the NPAs and profitability relationship by estimating the determinants of profitability of 39 public sector and private banks for the time period from 2005 to 2019. Using a set of bank specific and macroeconomic predictors of profitability, we found that NPA has negative impact on the rate of profit of the Indian banks. The study suggests that the banks must reduce their NPAs and operating cost to improve their profitability.
format	article
author	Santosh Kumar Das Khushboo Uppal
author_facet	Santosh Kumar Das Khushboo Uppal
author_sort	Santosh Kumar Das
title	NPAs and profitability in Indian banks: an empirical analysis
title_short	NPAs and profitability in Indian banks: an empirical analysis
title_full	NPAs and profitability in Indian banks: an empirical analysis
title_fullStr	NPAs and profitability in Indian banks: an empirical analysis
title_full_unstemmed	NPAs and profitability in Indian banks: an empirical analysis
title_sort	npas and profitability in indian banks: an empirical analysis
publisher	SpringerOpen
publishDate	2021
url	https://doaj.org/article/c5b72a32f9244e6d9c22b1fc0a632efd
work_keys_str_mv	AT santoshkumardas npasandprofitabilityinindianbanksanempiricalanalysis AT khushboouppal npasandprofitabilityinindianbanksanempiricalanalysis
_version_	1718443514976534528

NPAs and profitability in Indian banks: an empirical analysis

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