Publish In |
International Journal of Management and Applied Science (IJMAS)-IJMAS |
Journal Home Volume Issue |
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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 | |||||||||
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