Batra, Sumant & Dass, Kesar (2003), this study “Maximizing value of …show more content…
Bhatia and Mishra, S. (2007), in the study “Non-Performing Assets of Indian Public, Private and Foreign Sector Banks: An Empirical Assessment” examined the fundamental factors which impact NPA of banks using an extended Altman model. The model consisted macroeconomic factors and bank specific parameters. The macroeconomic factors of the model are GDP growth rate, excise duty and the bank specific parameters are Credit Deposit Ratio (CDR), loan exposure to priority sectors, Capital Adequacy Ratio (CAR), and liquidity risk. The observations of this study are refutable; the study provided an insight on a few analytical tools that can be widely used in analyzing the asset quality of the banks. The authors commented that the NPA movement can be explained well by the factors considered in the model for the public and private sector banks.
Latha, K. (2002), the paper titled “Non-Performing Assets in Banks: An Analytical Study” studied the magnitude, composition and causes of NPAs of commercial banks in India the study has carried out an econometric analysis at possible determinants of NPAs. The major findings of the study are 20-26% of variation in NPAs across commercial banks in India can be explained by efficiency and regional pressure; capital adequacy ratio and return on assets are negatively related to …show more content…
of India under the chairmanship of Shri R. G. Saraiya in 1972 for a comprehensive reconsideration of banking structure in rural areas. After investigating various issues for expansion of activities of commercial banks in rural areas and their limitations, the Banking Commission expressed serious concerns on the initiatives of these institutions to promote rural financing in India. The Commission considering the initial practical difficulties in opening up such banks and its phased expansion the Commission recommended that as a subsidiary of commercial bank, a very limited number of rural banks should start their operations during an initial phase of five years. The Commission also explained further the details of capital structure, management structure, personnel policies, dividend policy, interest rate policy, linkages with other govt. bodes, terms of borrowing, minimum requirements of liquidity to be prescribed etc. The main objective of these institutions should