An Econometric Study of the Consolidated Portfolio of Indian Scheduled Commercial Banks, 1951-1972

The purpose of this paper is to test the empirical validity of the theoretical model of portfolio selection by banks originally briefly illustrated by Karlin [1] and further developed by Porter [5] and Orr and Mellon [4]. The present author has elsewhere reformulated this model in a manner in which it can systematically analyse the portfolio choice of banks in situations involving any number of assets and alternative regimes of reserve requirement regulations [2].