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Indian Journal of Finance

ISSN: 0973-8711 Frequency: Monthly Peer Review: Double-blind Published since: 2007 Language: English
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Original Article

Open Access Original Article

National Banks: How Much do they Bank on Off Balance Sheet Items? An Indian Outlook

Hariom Gurjar1,  Mahesh Chandra Joshi2,  Akhilesh Tripathi3

1 Research Scholar, Poornima University, Jaipur - 302 022, Rajasthan

2 Professor and Dean, Poornima University, Jaipur - 302 022, Rajasthan

3 DGM, State Bank of India, Jaipur

Volume 13
Issue 9
Pages 31–47
Year 2019
Received: Aug. 20, 2018 Accepted: July 30, 2019 Published: Sept. 30, 2019
Abstract

The banking system forms the backbone of the financial sector in a bank-based economy such as India. Off-balance sheet activity plays a vital role in helping banks limit long-term financial resources in the balance sheet report and increase the banks' profitability worldwide. We explored the determinants of OBS items with banking and economic factors influencing off-balance items in the measurement of banks' output of selected national banks in India for the duration of 2008-2017. This study used a multiple regression model to describe the logical connection between the role of OBS and its various determinants like bank size, loan, CAR, NNPA, NIM, ROA, reserves, GDP, and inflation for the said period. This study found that bank size and NIM positively affected the OBS activities; whereas, CAR and loan negatively affected the OBSA of the selected public sector banks.

Keywords National Banks Public Sector Banks Non-Interest Income Off Balance Sheet Activities Commercial Banks Bank Specific Regulatory Factors Macroeconomic Factors.JEL Classification
How to Cite

Hariom Gurjar, Mahesh Chandra Joshi, Akhilesh Tripathi (2019). National Banks: How Much do they Bank on Off Balance Sheet Items? An Indian Outlook. Indian Journal of Finance, 13(9), 31–47. https://doi.org/10.17010/ijf/2019/v13i9/147097

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