RELATIONSHIP BETWEEN THE NON-PERFORMING ASSETS AND MACROECONOMIC VARIABLES - A PANEL DATA ANALYSIS OF INDIAN BANKING SECTOR
RELATIONSHIP BETWEEN THE NON-PERFORMING ASSETS AND MACROECONOMIC VARIABLES - A PANEL DATA ANALYSIS OF INDIAN BANKING SECTOR

Summary/Abstract: This paper empirically evaluates the relationship between accumulation of NPA in banking sector and economic growth of Indian economy. The relationships between nonperforming assets of different bank groups and annual GDP, interest rate, inflation rate, and bank wise gross advances and bank wise gross assets are analysed using panel data framework. The study finds that GDP have significant impact on accumulation of NPA and interest rate also plays a significant role in accumulation of NPA in Indian banking sector. Bank specific both factors, gross assets and gross advances, are also significant for accumulation of nonperforming assets in Indian banking industry.

• Details
• Contents