INDIAN BANKING SECTOR
Shreejit Nair (Roll No. 222101)
LITERATURE REVIEW
Does Gender Diversity of Boards Affect Performance? Evidence from Indian Banking Sector
HAND, REKHA, (2019) studies the role of women directors in the performance of Indian banks and assesses the issue whether the presence of women on boards of Indian banks translates into good performance. For the research, the paper took 24 public sector banks and 12 private sector banks as sample and data was collected for four years spanning across 2013, 2014, 2015 and 2016. The mean number of women directors on board barely stands at one with low standard deviations, highlighting the gravity of gender disparities.
Corporate Governance and Risk Management: An Analysis of Indian Banking Sector
SWAIN K R, SAMANTRAY KUMAR ANUP, (2019) in their paper examines the degree to which banks in India use risk management practices and corporate governance in dealing with different types of risk. The study found that the major risk management processes identified by six banks are efficient. The important types of risk as ranked by the various selected banks were the credit risk, operating risk, solvency risk, interest rate risk, and liquidity risk.
Status of Employee Engagement: Insights from Indian Banking Sector
SONI, DEEPALI; MEHTA, POOJA, (2020) measures the level of employee engagement in the banking sector, as it is the dominant player in the Indian economy. The study of literature showed that employee engagement has emerged from constructs such as job satisfaction, motivation and organizational commitment, but in the management literature it is much wider than just commitment and motivation. For the research, the multistage sampling was applied to determine the sample. Thus, it was found out that employees in banks are engaged in their professional role cognitively, physically, and emotionally.
The Impact of Basel III Norms on Indian Public Sector Banks: A Review of Empirical Studies
BOORA, K KRISHAN; SAVITA, (2020) reviews the available literature on the Basel III norms and their impact on Indian public sector banks. The empirical studies of the last seven years (2013-2020) have been reviewed in this paper. It is found that the financial soundness of banks is a necessity to implement Basel norms. Only financially strong banks can easily adopt new Basel Accord, and the financially weak banks will face problem in Basel III norms implementation.
The Cyclical Behavior of Capital Buffers in the Indian Banking Sector
BHARGAVA, PRANESH; SUBRAHMANYAM, A C V, et al (2021) examines the relationship between the business cycle and the capital buffers held by Indian banks using the bank level unbalanced panel data from 1995 to 2020. From the literature review, it is evident that in a few countries, there exists a negative co-movement with the business cycle, whereas in other countries the capital buffers are positively related to the business cycle. The paper found a negative relationship between capital buffers and output growth in listed banks. It also found a positive relationship between the capital buffers, and the business cycles during the period of Basel norms I and II, but it turned into negative by 2020 for domestic banks.
Psychological Empowerment as a Predictor of Affective Commitment Among Employees of Indian Banks
GAHLAWAT, NEHA; KUMAR, SANDEEP, (2021) makes an attempt to examine the mechanism of enhancing affective commitment by understanding the effects of psychological empowerment on employees’ commitment. Psychological empowerment is very effective in generating affective commitment among Indian banking employees. Bank managers should focus on minimizing the elements present in the work environment that might create a feeling of helplessness in employees.
Evaluation of Marketing Implications/Customer Perception of Service Quality of Banks in the Face of Commercial Bank Mergers in India: A Literature Review
PRASAD, D S, (2021), evaluates the study on the relationships between certain demographic and behavioural characteristics and consumer perception of banking service quality in the context of commercial bank mergers in India, with the goal of identifying gaps in the present body of information that warrant future research initiatives. Finally, the study discovered that demographic and behavioural characteristics, as well as consumer impression of the quality of service provided by merging commercial banks in India, are connected.
YES Bank Fraud: Examining the Softer Underbelly of the Fraud from a Behavioral Model
AGGARWAL DIVYA, SHARMA NISTALA (2022) presents a conceptual model to investigate the behavioural fabric of fraud by broadening the scope of existing corporate fraud models. It also gives an overview of the prominent corporate fraud models in the existing literature. While financial forensics gives explicit explanations of the economic underpinnings of fraud, behavioural forensics will face the bad crop scenario directly.
Productivity growth in Indian banking: who did the gains accrue to?
VARDHAN, HARSH; SENGUPTA, RAJESWARI, (2022) throws some light on who have been the main beneficiaries of these efficiency gains witnessed by the Indian banking sector in the mid-1990s to 2010 period. Analysis from 1992 to 2019 suggests that the Indian banking industry witnessed significant productivity improvements until around 2010, after which the gains appear to have plateaued and even fallen significantly in recent years.
Efficiency in Indian Banking Sector: A Data Envelopment Analysis
PREETI; ROY SUPRIYO, (2022) provides a non-parametric technique to evaluate bank efficiency by building a non-traditional data envelopment approach model. It creates a non-oriented and non-radial methodology to compute productive efficiency ratings for Indian public sector banks. Approximately 20% of public sector banks in India were deemed to be efficient between 2015 and 2019. The findings show areas for development and how ordinary banks might lower interest expenditures while increasing other income to enhance efficiency.
Conclusion
The research papers focus on various aspects of the Indian banking sector, such as the impact of gender diversity on performance, risk management and corporate governance, employee engagement, Basel III norms, capital buffers, affective commitment, customer perception of service quality, productivity growth, and efficiency. The studies suggest that more gender diversity on boards is needed, that banks apply effective risk management and corporate governance practises, and that staff are engaged in their professional roles. The compliance of Basel-III norms necessitates financially healthy institutions, and the cyclical behaviour of capital buffers vary depending on the business cycle. Employee emotional commitment can be increased through psychological empowerment. Demographic and behavioral characteristics influence consumer perception of banking service quality, and the Indian banking industry witnessed significant productivity improvements until around 2010. Finally, approximately 20% of public sector banks in India were deemed to be efficient between 2015 and 2019, and there are areas for development to enhance efficiency.
REFERENCES
BHARGAVA, P.; SUBRAHMANYAM, A. C. V.; THOTA, N. The Cyclical Behavior of Capital Buffers in the Indian Banking Sector. IUP Journal of Applied Economics, [s. l.], v. 20, n. 3, p. 43–56, 2021. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=f6a8ae3c-45f0-3dbd-a2cd-4c444d6b7da5. Acesso em: 13 maio. 2023.
BOORA, K. K.; SAVITA. The Impact of Basel III Norms on Indian Public Sector Banks: A Review of Empirical Studies. IUP Journal of Bank Management, [s. l.], v. 19, n. 3, p. 7–24, 2020. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=cabf2614-dcd7-32a7-af15-bb9dc14b5535. Acesso em: 13 maio. 2023.
GAHLAWAT, N.; KUMAR, S. Psychological Empowerment as a Predictor of Affective Commitment Among Employees of Indian Banks. IUP Journal of Organizational Behavior, [s. l.], v. 20, n. 4, p. 40–49, 2021. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=d52fb81f-382e-39d3-9411-53d00e643772. Acesso em: 13 maio. 2023.
HANDA, R. Does Gender Diversity of Boards Affect Performance? Evidence from Indian Banking Sector. IUP Journal of Bank Management, [s. l.], v. 18, n. 2, p. 41–56, 2019. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=07b8eac5-9aee-3665-99c5-69a599e19d3b. Acesso em: 13 maio. 2023.
PRASAD, D. S. Evaluation of Marketing Implications/Customer Perception of Service Quality of Banks in the Face of Commercial Bank Mergers in India: A Literature Review. IUP Journal of Accounting Research & Audit Practices, [s. l.], v. 20, n. 4, p. 88–100, 2021. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=1abf3da7-75d8-3e79-a761-5a3f90defc6b. Acesso em: 13 maio. 2023.
PREETI; ROY, S. Efficiency in Indian Banking Sector: A Data Envelopment Analysis. IUP Journal of Bank Management, [s. l.], v. 21, n. 1, p. 29–43, 2022. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=31dbc9f9-8fc2-3e58-af29-ce6ecf79d67c. Acesso em: 13 maio. 2023.
SENGUPTA, R.; VARDHAN, H. Productivity growth in Indian banking: who did the gains accrue to? India Review, [s. l.], v. 21, n. 1, p. 108–127, 2022. DOI 10.1080/14736489.2021.2018204. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=c7a380e7-a7f5-3529-b123-dc7df786b801. Acesso em: 13 maio. 2023.
SHARMA, N. J.; AGGARWAL, D. YES Bank Fraud: Examining the Softer Underbelly of the Fraud from a Behavioral Model. Journal of Forensic Accounting Research, [s. l.], v. 7, n. 1, p. 133–150, 2022. DOI 10.2308/JFAR-2021-022. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=1c09444e-c6e2-306d-9157-8fbdce539f4f. Acesso em: 13 maio. 2023.
SONI, D.; MEHTA, P. Status of Employee Engagement: Insights from Indian Banking Sector. Journal of Services Research, [s. l.], v. 20, n. 2, p. 147–155, 2020. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=6c34f15e-9796-3317-8cf0-5baad3ab8136. Acesso em: 13 maio. 2023.
SWAIN, K. R.; SAMANTRAY, A. K. Corporate Governance and Risk Management: An Analysis of Indian Banking Sector. IUP Journal of Corporate Governance, [s. l.], v. 18, n. 3, p. 7–19, 2019. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=c589fa3c-b10b-3ff5-b6f3-88f90ffb5ff8. Acesso em: 13 maio. 2023.