DOIONLINE

DOIONLINE NO - IJMAS-IRAJ-DOIONLINE-10710

Publish In
International Journal of Management and Applied Science (IJMAS)-IJMAS
Journal Home
Volume Issue
Issue
Volume-4,Issue-1  ( Jan, 2018 )
Paper Title
A Cross-sectional analysis of asset quality effect on profitability of Indian Banking Industry
Author Name
Bhaarathi.N
Affilition
Ph.D Scholar, Tamilnadu Agricultural University, Coimbatore-3.
Pages
42-45
Abstract
This study investigates whether asset quality effect the bank’s profitability in India. The study applies a panel regression method to the quarterly data set including 1026 observation belongs to 93 Banks in India during the period from 2005 to 2016. It is found that there is a significant, negative relationship between non-performing loans, impairment charges and profitability which is measured by return on equity and return on asset. The higher non-performing loans the lower asset quality, lead s to the lower return on equity and return on asset, and the lower non-performing loans, the higher asset quality, leads to the higher return on equity and return on asset. Keywords - Asset Quality, Nonperforming assets, Return on asset, Return on Equity
  View Paper