IDEAS home Printed from https://ideas.repec.org/a/ids/ijbpma/v25y2024i6p761-785.html
   My bibliography  Save this article

Determinants of profitability of state-owned banks in India: a dynamic panel data approach

Author

Listed:
  • Padmasai Arora
  • A. Jiran Meitei
  • Hitesh Arora

Abstract

Indian state-owned banks (SOBs) stand out distinctly in terms of volume and branch network. Once regarded as harbingers of economic change, they have started losing market share to their private counterparts. The profitability of SOBs has witnessed a steady decline post global crisis and turned into losses in 2016. Addressing the problem of low profitability at the policy level requires identification of its major determinants. This paper takes a close empirical look at bank specific and macro-economic determinants of profitability of Indian SOBs during 2004-2005 to 2018-2019 using dynamic panel model. This study provides a new perspective needed for understanding the impact of previous year's profitability on current bank profitability. The results are also indicative of counter cyclical measures adopted for SOBs by the authorities. This study gains immense importance in the light of the ongoing efforts by Indian government to restructure and consolidate Indian banking sector.

Suggested Citation

  • Padmasai Arora & A. Jiran Meitei & Hitesh Arora, 2024. "Determinants of profitability of state-owned banks in India: a dynamic panel data approach," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 25(6), pages 761-785.
    • Handle: RePEc:ids:ijbpma:v:25:y:2024:i:6:p:761-785
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=141901
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbpma:v:25:y:2024:i:6:p:761-785. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=3 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.