Bishnoi / Devi Banking Reforms in India

Consolidation, Restructuring and Performance
1. Auflage 2017
ISBN: 978-3-319-55663-5
Verlag: Springer Nature Switzerland
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 254 Seiten

Reihe: Palgrave Macmillan Studies in Banking and Financial Institutions

This book provides a historical evaluation of banking reforms and structural changes in India over the past 25 years. Chapters cover issues in consolidation and restructuring, competition and concentration, performance evaluation in terms of cost efficiency and productivity, profitability, non-performing assets and technology use. The authors use specific regression models to measure the impact of these reforms on bank performance during this period and assess whether or not the consolidation phase is now complete. This volume will be of interest to researchers and academicians interested in the financial history of Indian Banking reforms.

T R Bishnoi, PhD, is the RBI Chair Professor in the Faculty of Commerce at the Maharaja Sayajirao University of Baroda, India. He has held various academic positions including Senior Lecturer in the Department of Economics at the University of Mumbai, India, IFCI Chair Professor in Industrial Finance at the Nirma University of Science and Technology, India, and Associate Professor in the Department of Economics at the M S University of Baroda, India. He has edited two books, authored one book and published more than 30 research papers in professional journals. Sofia Devi Sh., PhD, is a Research Assistant at the Reserve Bank of India Endowment Unit at the Maharaja Sayajirao University of Baroda, India. She has over eight years of teaching and research experience as lecturer and research assistant. 

Autoren/Hrsg.

Bishnoi, T R

Devi, Sofia

Inhaltsverzeichnis

1;Preface;7
2;Acknowledgements;10
3;Contents;12
4;Abbreviations;13
5;List of Tables;16
6;1 Indian Banking Structure: An Overview;19
6.1;Introduction;19
6.2;Historical Background of Indian Banking;22
6.2.1;Regulation and Optimal Banking Structure;24
6.2.2;Criteria of Optimal Banking Structure;25
6.3;Banking Structure After Financial Reforms;28
6.3.1;Narasimham Committee on Financial Reforms;28
6.3.2;India’s Banking Structure: Relative Size of Banking;30
6.3.3;India’s Banking Structure: Accessibility and Outreach;32
6.3.4;India’s Banking Structure: Allocation of Credit;38
6.4;Restructuring and Consolidation of Banks: Concepts;40
6.4.1;Restructuring;40
6.4.2;Consolidation;42
6.5;Approach of Analysis;42
6.6;Conclusion;45
6.7;References;46
7;2 Banking Reforms;48
7.1;Introduction;48
7.2;Deregulation;52
7.2.1;Liberalizing Entry Barriers and Interest Rates;52
7.2.2;Variable Reserve Ratios;59
7.3;Banking Prudential Regulations;62
7.3.1;Capital to Risk-Weighted Asset Ratio;63
7.3.2;Governance: Transparency and Disclosures;67
7.3.3;Classification of Non-performing Assets;69
7.3.4;Income Recognition and Provision Policy;71
7.3.5;Legal Approach to Assets Recovery;72
7.4;Conclusion;73
7.5;References;74
8;3 Restructuring and Consolidation—Mergers and Acquisitions;76
8.1;Introduction;76
8.2;Mergers and Acquisitions: Theory, Objectives and Empirical Evidences;77
8.3;Regulatory Framework and Trend in Mergers and Acquisitions;83
8.4;Analytical Framework;88
8.5;Pre- and Post-merger Performance of Banks;90
8.5.1;Bank of Baroda (BOB);92
8.5.2;HDFC Bank;93
8.5.3;ICICI Bank;93
8.5.4;IDBI Bank;96
8.5.5;Indian Overseas Bank (IOB);98
8.5.6;Oriental Bank of Commerce (OBC);99
8.5.7;Punjab National Bank (PNB);101
8.5.8;State Bank of India (SBI);101
8.5.9;Union Bank of India (UBI);102
8.6;Reasons for Statistical Insignificant of Ratios;102
8.6.1;Profitability Ratios;102
8.6.2;Solvency Ratio;103
8.6.3;Other Ratios;103
8.7;Conclusion;104
8.8;References;105
9;4 Concentration and Competition;108
9.1;Introduction;108
9.2;Empirical Studies;114
9.3;Methodological Approach and Theoretical Model;120
9.3.1;Structural Measures of Concentration Ratio and Herfindahl-Hirschman Index;121
9.3.2;Non-structural Method of the Panzar-Rosse Model;124
9.4;Analysis of Results;126
9.4.1;k-Firm Concentration Ratios and Herfindahl-Hirschman Index Values;126
9.4.2;The Panzar-Rosse Model: Regression Results;128
9.4.3;Price and Non-price Competition;131
9.5;Conclusion;134
9.6;References;136
10;5 Cost Efficiency and Productivity;138
10.1;Introduction;138
10.2;Empirical Studies;139
10.3;Statistical Cost Function;141
10.4;Analysis of Results;143
10.4.1;Average Size and Size Range;144
10.4.2;Marginal Cost and Mean Average Cost;144
10.4.3;Economies of Scale;147
10.4.4;Sources of Economies and Diseconomies of Scale;157
10.4.5;Minimum Efficient Size;160
10.4.6;Improvement in Cost Efficiency;162
10.5;Productivity;165
10.6;Empirical Studies on Productivity;165
10.7;Trends in Manpower Productivity;167
10.8;Analytical Framework and Results;169
10.8.1;Data and Methodology;169
10.8.2;The Malmquist Total Factor Productivity Index;170
10.9;Conclusion;176
10.10;References;178
11;6 Profitability;181
11.1;Introduction;181
11.2;Empirical Studies;183
11.3;Profitability;187
11.3.1;Structure of Operating Income and Expenditure;187
11.3.2;Trends in Profitability Ratios;191
11.3.3;Determinants of Profitability;194
11.4;Conclusion;200
11.5;References;201
12;7 Non-performing Assets;202
12.1;Introduction;202
12.2;Theory of Non-performing Assets;203
12.2.1;Information Asymmetry, Adverse Selection and Moral Hazard;203
12.2.2;Macroeconomic Slowdown and Other Factors;205
12.3;Policy Definitions of Non-performing Assets;207
12.3.1;Asset Classification;208
12.3.2;Recovery Mechanism of Non-performing Assets;210
12.4;Trends in Non-performing Assets;211
12.4.1;Non-performing Assets at the Global Level;211
12.4.2;Non-performing Assets of Commercial Banks;212
12.4.3;Sector-Wise Non-performing Assets;214
12.4.4;Distribution of Non-performing Assets by Bank;217
12.5;Analytical Framework and Results;218
12.6;Conclusion;221
12.7;References;222
13;8 Information Technology in Banking System;225
13.1;Introduction;225
13.2;Role of Information Technology in Banking: Select Studies;227
13.3;Technology Spread and Intensity in Payment System;229
13.4;Information Technology Use and Bank Performance;233
13.5;Conclusion;235
13.6;References;236
14;9 Summary and Conclusions;238
14.1;Introduction;238
14.2;Banking Structure;238
14.3;Banking Reforms;242
14.4;Consolidation and Restructuring;244
14.5;Concentration and Competition;245
14.6;Performance;246
14.7;Policy Suggestions;247
14.8;References;251
15;Index;252