Rohit Bansal, Arun Singh, Sushil Kumar and Rajni Gupta
The purpose of this paper is to quantify several measures to examine the determinants of profitability for the listed Indian banks. The authors include both public sector (PSUs…
Abstract
Purpose
The purpose of this paper is to quantify several measures to examine the determinants of profitability for the listed Indian banks. The authors include both public sector (PSUs) and private sector’s banks in the study. The authors have taken all the banks that are registered on the Bombay stock exchange (BSE) in the sample. This paper also intends to identify the association between the net profit margin (PM) and return on assets (ROA) with the several other independent variables of the Indian banking sector including private banks and public banks over the past six years starting from April 1, 2012 to March 31, 2017. Therefore, a sample of 39 listed banking companies and total 195 balanced observations are selected for the analysis purpose.
Design/methodology/approach
The authors have used profitability as a dependent variable represented by net PM, ROA and several financial ratios as independent variables. Financial statement and income statement of all listed banks were obtained from BSE and particular company’s website. Panel data regression has been analyzed with both the descriptive research techniques, i.e., fixed effects and random effects. The authors also verified both panel techniques with Hausman’s specification test, which is a widely used procedure for selecting a panel effect. The authors applied PP – Fisher χ2, PP – Choi Z-statistics and Hadri to testing whether the data set is free from unit root problem and data set is a stationary series.
Findings
Results imply that interest expended interest earned (IEIE) and credit deposit ratio (CRDR) reduced the profitability of private banks in India. IEIE, CRDR and quick ratio (QR) reduced the profitability of public banks in India, while cash deposit ratio (CDR) and Advances to Loan Funds (ALF) increased the effectiveness of public banks. Under the total banks IEIE, CRDR reduced the profitability, on the other side, CDR, ALF and Total Debt to Owners Fund (TDOF) increased the profitability of total banks in India. Under the dependency of ROA, CRDR and TDOF reduced the return of private banks in India, while CDR, ALF and QR enhanced the profitability of private banks.
Originality/value
No variables found significant under public banks while taking ROA as a dependent variable. Under the overall banking data, CRDR reduced the profitability. On the other side, capital adequacy ratio and ALF increased the profitability of total banks in India. The findings of this study will support policy creators, financial executives and investors in constructing investment decisions.
Details
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Deepak Jaroliya and Rajni Gyanchandani
A leader plays an important role in the growth of an organization. The leader is a person who influences the standards, structure, culture and behaviour of the individuals…
Abstract
Purpose
A leader plays an important role in the growth of an organization. The leader is a person who influences the standards, structure, culture and behaviour of the individuals employed in the organization. A leader also has effects on the result and productivity of teams. The purpose of this paper is to analyze the effect of transformational leadership style on team performance. This paper will also analyze the existence of a relationship between transformational leadership style and team performance.
Design/methodology/approach
For this study, the researcher collected the data from 354 individuals employed in IT organizations in Pune. The team members answered questions asked about the transformational leadership style, and the team leaders answered questions related to team performance. The data has been analyzed using the latest available version of Statistical Product and Service Solutions.
Findings
The results of this examination suggest that there is strong and positive relationship between the transformational leadership style and team performance. Further, it was also found that transformational leader helps in a great way in improving team performance which in turn increases the organization’s productivity.
Research limitations/implications
Few limitations of this research work are that the data collected for this research work is non-cognitive in nature and simultaneously respondents may incline to evaluate the positive facets of opinion poll more propitiously than negative facets. Secondly, the data have been collected only from companies located in Pune.
Practical implications
This research study provides empirical data that will be helpful for human resources department of an organization, as it can help them in the development of policies and practices. It will also provide help leaders to support employees who are seeking effective ways to support struggling employees in context to their team performance.
Originality/value
The present study can be differentiated from past studies, as it thinks over an ensemble of transformational leadership style as an essential antecedent of team performance and also enhances the knowledge of the researchers and practitioners about the leadership style that upshot to the team performance. This will also help the managers, researchers, organizational development specialist and employees who are seeking effective ways to support struggling employees in context to their team performance.