The determinants of liquidity of Indian listed Commercial banks: A panel data approach

Abstract

India has a huge and complicated economic machine characterized with the aid of using a various spectrum of economic institutions, together with each banks and non-banks (Ghosh, 2016). Since the 1990s, the Indian economic system has skilled large liberalisation and regulatory modifications with the motive of enhancing efficiency, profitability, and productivity, permitting companies to turn out to be extra competitive (Ghosh, 2016; Rina, 2009). Indian financial institution product markets, on the alternative hand, are pretty aggressive and much less opaque because of records asymmetry (Sinha & Sharma, 2016). A important a part of the liberalisation tasks became the emphasis on improving banking quarter competitiveness via way of means of extending the economic gadget to encompass non-public and multinational institutions (Ghosh, 2016). The Indian banking machine now carries 27 kingdom banks, 26 non-public banks, forty six overseas banks, fifty six local rural banks, 1,574 city cooperative banks, and 93,913 rural cooperative banks, in addition to cooperative lending organisations, in line with the Reserve Bank of India's annual database (RBI). Public region banks account for 70–seventy three percentage of Indian banks' overall assets (Ghosh, 2016; Shrivastava, Sahu, & Siddiqui, 2018).