Are Indian Nationalised Banks Strong Enough to Face Present Economic Down Turn?
-------------------------------------------------
ARE INDIAN NATIONALISED BANKS STRONG ENOUGH TO FACE PRESENT ECONOMIC DOWN TURN?
Prof. Vishwas Wadekar
Assoc. Prof. and Head MIT COE’s CMSR vishwaswadekar1@gmail.com 9421678217
Abstract: In any economy, banks assume a greater importance as they perform much higher role in the total economy than any other factor. Banks are backbone of any economy. The researcher in this paper has proved that how economic ups and downs reflect overall performance of banks. Performance of banks depend on three counts i.e. Ratio of Non Performing Assets, Profitability, and Capital Risk Adequacy Ratio. The whole world was affected during the downturn of 2008-9 due to recession in US. The world is again gripped with a fear of recurrence of the past as the most of the European countries are facing another downturn of sorts. US have already initiated the steps to be taken against the economic slump. Indian banks which survived the earlier downturn quite robustly are again getting sketchy as their results have started rolling out. In this research paper, the researcher has studied position of Key Indian Nationalised Banks on the three counts mentioned above and also the position of banking system as a whole
Key Words: Economic Downturn, Indian Banks, NPA, CRAR, Profitability.
INTRODUCTION
Globalisation is inevitable if one has to survive in the present era. However, globalisation brings its perils which at times seem to be overweighing the advantages. During past five years, the whole world is witnessing one more downturn round the corner. The economic environment on a macro level has become particularly turbulent. Rebalancing of changing risk perceptions and appetite have resulted due to a direct effect of global conditions.
Over the past two years, the performance of the major advanced economies has raised significant concerns about sustainability of the global recovery. In fact, by contrast, emerging
ARE INDIAN NATIONALISED BANKS STRONG ENOUGH TO FACE PRESENT ECONOMIC DOWN TURN?
Prof. Vishwas Wadekar
Assoc. Prof. and Head MIT COE’s CMSR vishwaswadekar1@gmail.com 9421678217
Abstract: In any economy, banks assume a greater importance as they perform much higher role in the total economy than any other factor. Banks are backbone of any economy. The researcher in this paper has proved that how economic ups and downs reflect overall performance of banks. Performance of banks depend on three counts i.e. Ratio of Non Performing Assets, Profitability, and Capital Risk Adequacy Ratio. The whole world was affected during the downturn of 2008-9 due to recession in US. The world is again gripped with a fear of recurrence of the past as the most of the European countries are facing another downturn of sorts. US have already initiated the steps to be taken against the economic slump. Indian banks which survived the earlier downturn quite robustly are again getting sketchy as their results have started rolling out. In this research paper, the researcher has studied position of Key Indian Nationalised Banks on the three counts mentioned above and also the position of banking system as a whole
Key Words: Economic Downturn, Indian Banks, NPA, CRAR, Profitability.
INTRODUCTION
Globalisation is inevitable if one has to survive in the present era. However, globalisation brings its perils which at times seem to be overweighing the advantages. During past five years, the whole world is witnessing one more downturn round the corner. The economic environment on a macro level has become particularly turbulent. Rebalancing of changing risk perceptions and appetite have resulted due to a direct effect of global conditions.
Over the past two years, the performance of the major advanced economies has raised significant concerns about sustainability of the global recovery. In fact, by contrast, emerging