Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

An Empirical Assessment on Liquidity Management of Indian Public Sector Banks


Affiliations
1 Department of Commerce, The University of Burdwan, West Bengal, India
2 Department of Economics, Victoria Institution, Kolkata, West Bengal, India
     

   Subscribe/Renew Journal


Banking sector is accepted as the main motivator in socio-economic upgradation of any country especially developing one like India. Commercial banks, specially their public domain, introduce the assistance programme to society under the portfolio of commercialisation and socialisation. Public sector banks play a pivotal role in framing the socio-economic development of our country by including all financially excluded poor populace at soft terms and conditions under their purview. But in this very effort, the said banks have to face extreme pressure due to lesser amount of deposit than advance, wilful default etc. which may have high impact on their liquidity position and thus would force them to face sustainability crisis in its professional field of activity. Therefore, to carry on a smooth operation in competitive environment, public sector banks would have to maintain a steady flow of liquidity which can be judged through some basic financial ratios.
The present paper aims at (i) assessing the consistent position of the public sector banks (listed in BSE 23.06.2016) in liquidity aspects during the period 1999-2000 to 2015-2016, (ii) making a bank-bank, bank-group (size of bank), and bank-sector comparative analysis on the liquidity position throughout the specific period, and (iii) examining any difference between and within at least two selected banks on liquidity aspects by applying some relevant statistical tools and techniques.

Keywords

Public Sector, Commercial Bank, Liquidity.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Adebayo, O., David, A. O., & Samuel, O. O. (2011). Liquidity management and commercial banks profitability in Nigeria. Research Journal of Finance and Accounting, 2, 24-38.
  • Arora, H. (2010). Effect of size and age on the performance of Indian banks under different ownership forms. The IUP Journal of Bank Management, 9, 28-41.
  • Das, L. (2014). Financial appraisal of commercial banks in India: A post reforms assessment. Research Journal of Finance and Accounting, 5, 117-126.
  • Das, B. C., Chowdhury, M. M., Rahman, M. H., & Dey, N. K. (2015). Liquidity management and profitability analysis of private commercial banks in Bangladesh. International Journal of Economics, Commerce and Management, 3(1), 4-34.
  • Goel, C., & Rekhi, C. B. (2013). A comparative study on the performance of selected public and private sector banks in India. Journal of Business Management and Social Science Research, 2, 46-56.
  • Gowri, M., & Ramya, G. (2013). An empirical study on banking sector with the use of camel model. Sona Global Management Review, 8, 10-20.
  • Gupta, S., & Kaur, J. (2014). A comparative study of the performance of selected Indian private and public sector banks. The IUP Journal of Bank Management, 13, 64-83.
  • Gupta, M., & Aggarwal, M. (2015). A study of profitability analysis of banking industry in post reform era. Amity Business Review, 54-60.
  • Hughes, J. P., & Mester, L. J. (2013). Measuring the performance of banks: Theory, practice, evidence and some policy implication. (n.p.): Oxford Handbook of Banking.
  • Ibrahim, M. (2011). Operational performance of Indian scheduled commercial banks: An analysis. International Journal of Business and Management, 6, 121-128.
  • James, K. (2013). What are the types of financial ratios used to analyse financial performance?. African Journal of Business Management, 5(35), 235-269.
  • Karim, R. A., & Alam, T. (2013). An evaluation of financial performance of private commercial banks in Bangladesh: Ratio analysis. Journal of Business Studies Quarterly, 5(2), 65-77.
  • Kundal, V. (2012). Performance of Indian banks in Indian financial system. International Journal of Social Science & Interdisciplinary Research, 1(9), 204-213.
  • Madhura, J. (2014). Financial markets and institutions (7th ed.). USA. Thomson South Western.
  • Najjar, N. J. (2013). Can financial ratios reliably measure the performance banks in Bahrain? International Journal of Economics and Finance, 5(3), 152-163.
  • Nandi, J. K. (2013). Comparative performance analysis of select public and private sector banks in India: An application of CAMEL model. The Journal of Institute of Public Enterprise, 36, 1-28.
  • Padake, V., & Soni, R. (2015). Measurement of efficiency of Top 12 banks in India using DuPont analysis. The IUP Journal of Bank Management, 14, 59-68.
  • Paul. P. (2015). A study on operational performance of Indian commercial banks. IJCEM International Journal of Computational Engineering & Management, 18, 23-27.
  • Payne, R. (2011). Finance’s role in the organization. Institute of Chartered Accountants in England and Wales, ISBN 978-1-84152-855-7.
  • PSBs dividend doel-outs Amid Flood of NPAs Draw Rajan Irc (2015, December 24). Economic Times, p.13.
  • Pyne, R. (2001). Finance’s Role in Organisation. Institute of Chartered Accountants in England and Wales: (n.p.).
  • RBI (2014). Priority Sector Lending Principle, 573 FIDD.CO.Plan.BC.54/04.09.01/2014-15
  • RBI eases Liquidity Rule, Releases Rs.2.81 Crore for Lending (2016, February 12), Economic Times, p.12.
  • Riaz, S., & Mehar, A. (2013). The impact of bank specific and macroeconomic indicators on the profitability of commercial banks. The Romanian Economic Journal, 91-110.
  • SBI to monetize Non-core Assets, Unlisted Entities (2016, January 13). Economic Times, p.13.
  • Tandon, K., & Malhotra, N. (2014). A comparative evaluation of efficiency in the Indian Banking industry using data envelopment analysis. The IUP Journal of Bank Management, 13, 33-46.
  • Thirunavukkarasu, J., & Nachimuthu, D. (2015). A comparative analysis of selected public and private sector banks. International Journal in Management and Social Science, 3, 296-307.
  • Walia, K., & Kaur, P. (2015). Performance evaluation of the Indian banking sector: A study of selected commercial banks. The IUP Journal of Bank Management, 14(3).

Abstract Views: 277

PDF Views: 1




  • An Empirical Assessment on Liquidity Management of Indian Public Sector Banks

Abstract Views: 277  |  PDF Views: 1

Authors

Manidipa Das Gupta
Department of Commerce, The University of Burdwan, West Bengal, India
Paramita Roy Biswas
Department of Economics, Victoria Institution, Kolkata, West Bengal, India

Abstract


Banking sector is accepted as the main motivator in socio-economic upgradation of any country especially developing one like India. Commercial banks, specially their public domain, introduce the assistance programme to society under the portfolio of commercialisation and socialisation. Public sector banks play a pivotal role in framing the socio-economic development of our country by including all financially excluded poor populace at soft terms and conditions under their purview. But in this very effort, the said banks have to face extreme pressure due to lesser amount of deposit than advance, wilful default etc. which may have high impact on their liquidity position and thus would force them to face sustainability crisis in its professional field of activity. Therefore, to carry on a smooth operation in competitive environment, public sector banks would have to maintain a steady flow of liquidity which can be judged through some basic financial ratios.
The present paper aims at (i) assessing the consistent position of the public sector banks (listed in BSE 23.06.2016) in liquidity aspects during the period 1999-2000 to 2015-2016, (ii) making a bank-bank, bank-group (size of bank), and bank-sector comparative analysis on the liquidity position throughout the specific period, and (iii) examining any difference between and within at least two selected banks on liquidity aspects by applying some relevant statistical tools and techniques.

Keywords


Public Sector, Commercial Bank, Liquidity.

References