Theoretical and Applied Economics
No. 2 / 2020 (623), Summer
Banking Sector Reforms and the Goals of Nationalised Commercial Banks in India
NMIMS University, India
Abstract. The main aim of the study is to analyse the role of Nationalised Commercial Bank (NCB) on economic growth and development in India during pre and post-reform periods (Restrictive and liberalised regime). The study also aims to analyse the performances and associations of nationalised commercial banks with the RBI in the same period. For this purpose, the study first uses Augmented-Dickey Fuller unit root test. After assessing stationary conditions, the study uses Engel-Granger Causality test and Trend line analysis. Based on the empirical results, the study found that the role of NCB on economic growth is higher in the post-reform period compared to the pre-reform period. But their role in poverty eradication and employment generation is less in the post-reform period even though the average GDP growth rate is high in the post-reform period. Similarly, the performances of NCBs are also declining due to the increasing trend in their NPAs. The study also found that the monetary policy is not much effective in India, especially after 2000 where fall in the interest rate failed to influence GDP. So the study strongly recommended frequent interference and instructions of RBI to enhance the performances of NCBs and the effectiveness of monetary policy to achieve macroeconomic goals.
Contents
Mathematical model used in substantiating optimal contract
Examining the drivers of business cycle divergence between Euro Area and Romania
Migration, economic causes and decisions
The voluntary pension funds – a viable solution to supplement the pensioners' incomes
An approach to measuring credit risk in a banking institution from Romania
Study on the evolution of tourism and perspectives
Investigating personnel dynamics within SMEs: A survey analysis for the case of Romania
Causes of the curve: Assessing risk in public and private financial economics
An approach to the index of economic freedom using the data mining technique in the economic environment context
Banking sector and bank liquidity – key actors within financial crises?
Existence of rewards for a sustainable enterprise in the context of the human resources strategy
Do export, financial development, and institutions affect FDI outflows? Insights from Asian developing countries
Are resources a curse or blessings? Evidence from panel ARDL model
Investigating factors affecting cooperative and non-cooperative behavior: An experimental game in the classroom
Impact of exchange rate regimes on inflation: An empirical analysis of BRICS countries
Tax structure and economic growth in general category states in India: A panel auto regressive distributed lag approach
Banking Sector Reforms and the Goals of Nationalised Commercial Banks in India
Determinants of economic growth in India: A time series perspective
Impact of credit guarantee on the output gap: A panel data analysis of Asian sovereigns
Analyzing the robustness of ARIMA and neural networks as a predictive model of crude oil prices
Does the agriculture value-added contribute to the economic growth in 30 African countries?