Banking

Determinants Of Stock Prices Of Banking Sector With Reference To Private Sector Banks

Read more at ideas.repec.org

Author

Listed:

Abstract

As financial intermediaries banks play an important role in the operations of an economy. Over the years private banks are gaining market share by providing solutions which people are not able to get from public sector banks. This is also visible in numbers as number of accounts, credit off take, Current Account and Saving Account (CASA) deposits have been growing over the years. Lastly the main issue of Net performing assets(NPA) has also been addressed by private sector banks. Over the years the NPA level has been low which clearly shows that prudent lending practices by private sector banks have rewarded not just banks but also stakeholders.It has been very well captured the on-going shift of people trust from public banks to private sector banks. The paper examines the determinants of private sector banks in India for the years 2010 to 2019. A sample of 15 banks in the private sector has been taken. Descriptive Analysis, Correlation and regression using panel data modelling has been performed. Share Returns has been taken as the dependent variable while other variables as Dividend per Share (DPS), Return on Equity (ROE), Price to Book (P/BV), Net interest margin (NIM), Capital Adequacy Ratio (CAR), Net non-Performing Assets to Net Advances (NPA to NA) are independent variables. The results show that independent variables are significant variables in affecting the profitability of banks in the private sector of Indian economy. It is also suggested that if banks concentrate on these variables, they would be able to generate better profitability and high returns for shareholders.

Suggested Citation

  • Neeraj Aswal & Sudhi Sharma, 2020.
    Determinants Of Stock Prices Of Banking Sector With Reference To Private Sector Banks,”
    Annals – Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 5-14, October.
  • Handle: RePEc:cbu:jrnlec:y:2020:v:5:p:5-14

    Download full text from publisher

    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:cbu:jrnlec:y:2020:v:5:p:5-14. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ecobici Nicolae). General contact details of provider: http://edirc.repec.org/data/fetgjro.html .

    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 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.

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

    Read more at ideas.repec.org

    Show More

    Related Articles

    Back to top button