Refine your search
Collections
Co-Authors
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All
Dash, Mihir
- Credit Concentration Risk in the Indian Banking Industry
Abstract Views :355 |
PDF Views:5
Authors
Affiliations
1 Department Management Science, School of Business, Alliance University, Bangalore, Karnataka, IN
2 School of Business, Alliance University, Bangalore, Karnataka, IN
1 Department Management Science, School of Business, Alliance University, Bangalore, Karnataka, IN
2 School of Business, Alliance University, Bangalore, Karnataka, IN
Source
International Journal of Banking, Risk and Insurance, Vol 4, No 2 (2016), Pagination: 11-26Abstract
Risk concentration has arguably been the single most important cause of major problems in banks. Banks should be particularly attentive to identifying credit risk concentrations and ensuring that their effects are adequately assessed. There have been many instances where large borrowers have caused sizable losses to many banks and jeopardized the health of many financial institutions. The current study attempts to compare and contrast the levels of concentration risk in the Indian banking industry in terms of concentration of deposits, advances, exposures and NPAs in the period 2010-2014, and to study the relationship between concentration risk and NPAs of the banks in the Indian scenario along with its relationship of concentration levels with age, return on net worth (RONW), capital adequacy ratio (CAR, Cost of Borrowings and Cost of Deposits.Keywords
Credit Risk Concentration, Correlated Defaults, Indian Banking Industry, Deposits, Advances, Exposures and NPAs.- Dimensionality of the CAMELS Model - A Case Study of Indian Banks
Abstract Views :166 |
PDF Views:0
Authors
Affiliations
1 Alliance University, Bengaluru, Karnataka, IN
1 Alliance University, Bengaluru, Karnataka, IN
Source
International Journal of Banking, Risk and Insurance, Vol 9, No 2 (2021), Pagination: 28-36Abstract
The CAMELS model is one of the most extensively used approaches in bank performance assessment (Sahajwala & Van der Bergh, 2000). It is based on 6 ‘dimensions’: capital adequacy, asset quality, management soundness, earnings potential, liquidity, and sensitivity to market risk. However, the dimensionality of the CAMELS model has never been empirically examined in literature. The present study analyses the dimensionality of the CAMELS model using exploratory factor analysis. The study was performed using a sample of 19 public sector banks and 17 private sector banks operating in India, over the study period 2007-2011, a period of financial crisis and turbulence, prior to the adoption of the Basel III norms. The results of the study suggest that the CAMELS framework should be reorganised, with the same underlying variables, grouped through factor analysis, and prioritised by variance explained. The model provides an explicit measurement of risk as a separate dimension of bank performance. The results of the study also suggest that liquidity, earnings performance, and risk are closely related to one another, with significant negative impact on each other.Keywords
CAMELS Model, Dimensionality, Exploratory Factor Analysis.References
- Altman, I. E. (1968). Financial ratios, discriminant analysis and prediction of corporate bankruptcy. Journal of Finance, 23(4), 589-609.
- Barr, R., Killgo, K. A., Siems, T. F., & Zimmel, S. (2002). Evaluating the productive efficiency and performance of U.S. commercial banks. Managerial Finance, 28(8), 3-25.
- Beaver, W. (1966). Financial ratios as predictors of failure. Journal of Accounting Research, 5, 71-111.
- Beaver, W. (1968). Market prices, financial ratios and prediction of failure. Journal of Accounting Research, 6(2), 179-192.
- Bhattacharyay, B. N. (2011). Macro-prudential monitoring of financial crisis: An empirical framework. In M. Chatterji, D. Gopal & S. Singh (Eds.), Governance, Development and Conflict (Contributions to Conflict Management, Peace Economics and Development (vol. 18, pp. 71-121). Emerald Group Publishing Limited.
- Dash, M., & Das, A. (2013). Performance appraisal of Indian banks using CAMELS rating. IUP Journal of Bank Management, 12(2).
- Hsiao, S.-H. (2008). Financial risk management of life insurers by CAMELS rating. Journal of Global Business Management, 4(1).
- Hsiao, S.-H. (2006). A study of investment performance and overall financial performance for life insurers in Taiwan. Working Paper, Rutgers. Retrieved from http://centerforpbbefr.rutgers.edu/2006/Paper%202006/03AS-077-Shu-Hua%20Hsiao.pdf
- Klomp, J., & de Haan, J. (2011). Banking risk and regulation: Does one size fit all? DNB Working Paper No. 323. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=197723
- Maliszewski, K. (2009). Measuring stability of the polish financial system by means of a synthetic index. Presented at the 12th International Conference on Finance and Banking, held on Oct. 28-29, 2009, Organised by Silesian University in Opava.
- Njoku, J. (2011). Anatomic assessment of CAMEL in Nigerian banking. International Journal of Economics and Accounting, 2(1), 76-99.
- Njoku, J., & Inanga, E. L. (2012). Underlying nature of the 2008-2009 banking crises. African Journal of Accounting, Auditing and Finance, 1(2), 190-208.
- Popovska, J. (2014). Modelling financial stability: The case of the banking sector in Macedonia. Journal of Applied Economics and Business, 2(1), 68-91.
- Sahajwala, R., & van der Bergh, P. (2000). Supervisory risk assessment and early warning systems. Basel Committee on Banking Supervision Working Papers, No. 4, Bank of International Settlements.
- Yakob, R., Yusop, Z., Radam, A., & Ismail, N. (2012). CAMEL rating approach to assess the insurance operators financial strength. Jurnal Ekonomi Malaysia, 46(2), 3-15.
- Mergers and Acquisitions in the Indian Banking Sector
Abstract Views :216 |
PDF Views:0
Authors
Affiliations
1 Alliance University, Bengaluru, Karnataka, IN
1 Alliance University, Bengaluru, Karnataka, IN
Source
International Journal of Banking, Risk and Insurance, Vol 10, No 1 (2022), Pagination: 29-45Abstract
This study aims to understand mergers and acquisitions activities in the Indian banking industry in the post-liberalisation period. The Indian banking industry witnessed a massive transformation in the post-liberalisation period, and triggered by economic development, the industry has emerged as one of the biggest drivers of economic growth. The industry has further undergone significant developments, with recognition of the importance of private and foreign players in the Indian market. In the light of the changing environment and ever-increasing competition, different strategies are adopted in the banking industry today. One such prominent strategy is mergers and acquisitions, which act as an important process for growth and expansion. This study analyses the impact of the mergers and acquisitions activities on the performance and profitability of banks. For the purpose of the study, five case studies of mergers/acquisitions in the post-liberalisation period have been analysed. The analysis includes comparision of financial statements, conducting ratio analysis using five-year pre- and post-merger data, and also examination of the effect of merger announcements on the share prices.Keywords
Mergers and Acquisitions, Indian Banking Industry, Performance, Profitability.References
- Gandhi, V., Chhajer, P., & Mehta, V. (2020). Post-merger financial performance of Indian banks: CAMEL approach. International Journal of Banking, Risk and Insurance, 8(2), 1-13.
- Hughes, A. (1993). Mergers and economic performance in the UK: A survey of the empirical evidence 1950-90. European Mergers and Merger Policy. Oxford University Press.
- Kuriakose, S., & Kumar, G. S (2010). Assessing the strategic and financial similarities of merged banks: Evidence from voluntary amalgamations in Indian banking sector. Science and Society, 8(1), 49-62.
- Kuriakose, S., Senam, R. M. S., & Narasimham, N. V. (2009). Voluntary amalgamations in Indian banking sector: Valuation practices and adequacy of swap ratios. SSRN Working Paper No. 1653698.
- Mall, P., & Gupta, K. (2019). Impact of merger announcements on stock returns of acquiring firms: Evidence from India. Journal of Commerce and Accounting Research, 8(1), 46-53.
- Mantravadi P., & Reddy, A. V. (2007). Relative size in mergers and operating performance: Indian experience. Economic and Political Weekly.
- Mehta, J., & Kakani, R. K. (2006). Motives for mergers and acquisitions in the Indian banking sector – A note on opportunities & imperatives. SPJCM Working Paper 06-13.
- Srivassan, R., Chattopadhyay, G., & Sharma, A. (2009). Merger and acquisition in the Indian banking sector – Strategic and financial implications. IIMB Management Review.
- Varghese, T., & Thaha, A. (2017). Impact of merger on acquiring bank performance: A case of Kotak Mahindra Bank. Journal of Commerce and Accounting Research, 6(3), 34-43.