Authors

1. Ms. Mamta Shah
2. Dr. Mahua Dutta

Affiliation

• Faculty Guru Nanak Institute of Management (GNIM), New Delhi
• Faculty Institute of Management Studies (IMS), Noida

Abstract

The Indian Banking system is witnessing a significant change over the past few decades. Several new institutions have sprung up and many of them have also failed due to global crisis or due to one or the other reason. For the efficient and smooth functioning of these institutions, proper governance norms for these institutions are urgently called for. Capital Adequacy norms given by BASEL Accord are one of the most significant developments for managing risk in banks. The present paper is an attempt to analyze the Capital adequacy norms and their implication in Indian private Banking Industry. The study is confined to ten private sector banks and their capital adequacy ratio for the last ten years for interpretation for the purpose of analysis. Regression analysis is used for the purpose of statistical calculation. The analysis of the statistical data pointed out to the conclusion that maintaining higher capital adequacy ratio by private sector banks was a not only a contributor towards achievement of higher efficiency, but was also a significant role player in risk aversion for these banks.

Keywords

Capital Adequacy, Banking Industry, , BASEL-II ,, risk and Capital structure

References

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