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A COMPARATIVE STUDY OF PERFORMANCE OF INDIAN BANKING SECTOR DURING SUB-PRIME CRISIS

Dr. Arpan Parashar Prof. Jaikishan Sahu

Abstract


Abstract:- Mounting NPAs in the Indian banking sector is a matter of grave concern and one of the most challenging economic issue which India is facing in the present era. Growing NPAs of banks are not only attributed to domestic factors but to global factors as well. The present paper aims to investigate the impact of economic slowdown due to global sub-prime lending crisis on the NPAs levels of the State Bank of India. For this purpose various financial parameters (ratios) have been studied for assessing the performance of SBI group covering the pre-crisis period (FY 2001-02 to FY 2007-08) and Post Crisis Period (FY 2008-09 to FY 2013-14) to study the change in these variables as a result of financial crisis Paired t test has been employed. It was found that there is no significant impact of sub-prime crisis on the performance of SBI. Further, a comparative study among SBI group, Nationalised Banks group and Private sector banks group was done and ranked based on different asset quality ratios, sectorial advances and NPA ratios wherein Private sector banks group out performed SBI Group and Nationalised banks group on various parameters.

Keywords:- Advances Quality, NPAs, Ratios, Sub-Prime Lending Crisis, Bank Groups.

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