{"title":"Impact of Bank-Specific and External Factors on Profitability: An Empirical Study of PSU Banks in India","authors":"Birajit Mohanty, Sankersan Sarkar","doi":"10.1080/10599231.2020.1783983","DOIUrl":null,"url":null,"abstract":"ABSTRACT Owing to increased banking regulation and competition, banks are facing challenges to maintain their profitability. This article studies the affect on profitability of banks’ internal factors and external economic factors. The evidence shows that liquidity risk has a significant negative affect on profitability of the PSU banks. Also operational risk and capital efficiency have a significant negative impact on profitability. Return on assets, bank size, and economic growth rate are found to influence profitability negatively; only the affect of the former was statistically significant. Increase in nonperforming assets adversely affects profitability.","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"227 - 242"},"PeriodicalIF":0.0000,"publicationDate":"2020-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1783983","citationCount":"4","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Asia-Pacific Business","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/10599231.2020.1783983","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Business, Management and Accounting","Score":null,"Total":0}
引用次数: 4
Abstract
ABSTRACT Owing to increased banking regulation and competition, banks are facing challenges to maintain their profitability. This article studies the affect on profitability of banks’ internal factors and external economic factors. The evidence shows that liquidity risk has a significant negative affect on profitability of the PSU banks. Also operational risk and capital efficiency have a significant negative impact on profitability. Return on assets, bank size, and economic growth rate are found to influence profitability negatively; only the affect of the former was statistically significant. Increase in nonperforming assets adversely affects profitability.
期刊介绍：
Present circumstances underscore the need to improve the understanding of conducting business with and within the Asia-Pacific countries. The Journal of Asia-Pacific Business™ provides a blend of cutting-edge knowledge and practical applications on business management and marketing strategy. In the Journal of Asia-Pacific Business™, you will find articles and feature sections that provide a pragmatic view of the business environment in this dynamic region. This essential resource offers readers a good blend of descriptive, conceptual, and theoretical articles dealing with current topics.
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