Indian Journal of Finance and Banking

Journal Information
ISSN / EISSN : 2574-6081 / 2574-609X
Total articles ≅ 92
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Utkarsh Goel, Shailendra Kumar
Indian Journal of Finance and Banking, Volume 8, pp 40-58; https://doi.org/10.46281/ijfb.v8i1.1476

Abstract:
This study aims to understand the factors that encourage the people from rural background to access the banking Services offered under a financial inclusion scheme, with evidences from a developing country, India. Pradhan Mantri Jan Dhan Yojana (PMJDY), scheme launched by Government of India, has an objective of connecting the banking industry with the people residing in the remote areas of the country. The research is aimed to gauge the PMJDY’s accomplishments in terms of fulfilment of its objectives. The research helps in getting a ground level feedback of the financial inclusion schemes’ achievements and issues involved in its successful implementation. This study also explores the perceptions of the individuals regarding the benefits offered by the scheme. A field survey of 2446 respondents was conducted in Purvanchal region of Uttar Pradesh, India. The questionnaire was constructed based on the theoretical model built after an extensive review of literature in the field of financial inclusion. The results from the analysis indicate that the awareness about the scheme and support by authorities are the two major factors that contribute to the successful implementation of a financial inclusion scheme. Overall awareness and availing of banking services under PMJDY scheme has been initiated but not uniformly.
Nandini M, Shubha B N
Indian Journal of Finance and Banking, Volume 8, pp 26-36; https://doi.org/10.46281/ijafr.v8i1.1403

Abstract:
Micro, Small and Medium sector (MSME) is the most dynamic sector due to its capacity for innovation, competence for advancements and perseverance to face multiple challenges. Though this sector contributes 8 per cent to GDP, 45 per cent towards manufacturing output and 40 per cent of exports. Still, they lack support to grow exponentially. Understanding the lending pattern of the banks and the perception of commercial banks towards MSME lending is essential not only for academic knowledge but also could necessitate policy changes. The objective of the research is to understand the lending pattern of banks to SMEs and the perception of commercial banks towards SME lending. The researcher used both primary and secondary data. Statistical tools ANOVA and Kruskal Wallis tests are used to analyze the collected data. The results indicate that there is no significant difference in the lending pattern of public sector banks, Private sector banks and foreign banks and the bank staff have a similar level of perception on difficulties in lending to SMEs, perception on the rejection of loan, perception on reluctance to serve SME sector, perception on loan default and factors affecting credit decisions irrespective of the type of the bank and experience in SME lending.
Rajesh Raut, Harsha Thorve, Shrawan Owhal
Indian Journal of Finance and Banking, Volume 8, pp 32-39; https://doi.org/10.46281/ijfb.v8i1.1402

Abstract:
Demonetization is the withdrawal of a particular form of currency from circulation. In other words, the notes lose their value as a currency. It is an instrument that is used to manage various economic problems such as inflation, corruption, tax evasion, etc. The Indian government on November 8, 2016, decided to demonetize high denomination currencies. This announcement had an impact on several sectors of the Indian economy. This study is an investigation to measure the impact of demonetization announcements on the Indian banking sector. This study employs cumulative abnormal return (CAR) and an event study methodology to measure the impact of the decision on the selected banking stocks. The study shows that demonetization had a significant impact on the stock prices of selected banks. The findings of the study suggest that on the event day, none of the selected stock has shown significant positive abnormal returns. Further on the event day and followed by the event day positive significant ARR is observed indicating demonetization had a significant impact on the stock prices of selected banks. Also, CAR on the event day is not equal to zero indicating the Indian stock market was not efficient for demonetization announcement.
Eltigani M. A. Ahmed
Indian Journal of Finance and Banking, Volume 8, pp 13-31; https://doi.org/10.46281/ijfb.v8i1.1351

Abstract:
The study investigated the appropriateness of innovation diffusion in understanding and explaining the adoption rate and acceptability of portable bank technology in Kenya through the assessment of the factors that influence the adoption of portable banking technology. The study employed a sample of 115 portable bank technology adopters based on a purposive sampling technique and tested the five attributes of innovations, namely relative advantage, compatibility, complexity, trialability, and observability. The study found that relative advantage, compatibility, Trialability, and observability positively impact adoption. Trialability and complexity were found to have a lesser significant effect on adoption. Complexity hurts adoption. More specifically, the regression model revealed that compatibility is the most significant determinant of adopting portable bank technology with t=4.21 and p ≤ 0.001. Trialability has a significant positive impact on adoption with t= 4.27 and p ≤ 0.001. Observability has a high explanatory value with t = 4.45 and p ≤ 0.001. Relative advantage has returned a positive explanatory coefficient at t=4.50 and p ≤ 0.001. Finally, Complexity had no significant impact on the adoption of portable banking technology. The study has uncovered useful trends in portable bank technology adoption in Kenya. The study recommended that future research should focus on broader variables and carry out comparative studies on both homogeneous and heterogeneous settings to gauge the net effect of technical attributes on technology adoption.
Ranjit Singh, Sujit Deb, Bhartrihari Pandiya, Arjun Gope
Indian Journal of Finance and Banking, Volume 8, pp 1-12; https://doi.org/10.46281/ijfb.v8i1.1350

Abstract:
The purpose of this paper is to assess the attitude of bank employees in Tripura towards investment in the mutual fund and investigate the impact of attitude on volume of investment. The study methodology is based on the responses of a questionnaire received from 262 employees of banks in Tripura. On the basis of primary data, the attitude of the employees has been assessed and ordinal logistic regression is used to find out the impact of attitude on their volume of investment in mutual fund. It is found that overall attitude of bank employees in Tripura towards investment in mutual fund is favorable. It can also be concluded that attitude and volume of investment in mutual fund is positively related. The study is useful for the fund managers of mutual funds. Once the attitude to employees towards investment in mutual fund is ascertained, then suitable strategy regarding imparting training can be designed to improve attitude towards investment in mutual fund. The study is original in nature.
Yogesh Mahajan
Indian Journal of Finance and Banking, Volume 7, pp 51-71; https://doi.org/10.46281/ijfb.v7i1.1346

Abstract:
This paper studies the impact of mudra on small and micro enterprises in terms of income generation, business expansion, standard of living, and employment generation in the process. The research is socio-economic research. The project applied mean difference method for quantitative data analysis and relative importance index method to analyse qualitative data. Paper used Schedule to conduct personal interviews to collect data from 384 respondents using convenience sampling. It was found that to some extent, the schemes have been successful in providing loans to MSME sector. The enterprises are benefitted due to collateral free mudra loan in terms of income generation and business expansion. But there was no significant impact on employment generation and standard of living as proved from the data collected from the respondents due to mudra loan. Also, no significant improvement in human development index was found among the respondents. No significant improvements in quality of food and nutrition were found as informed by the respondents. Financial independence has not been achieved for the women entrepreneurs. Policy implications for government and bank has been discussed at the end of paper. The paper is based on the project funded by Indian Council of Social Science Research, New Delhi. This is a first kind of study conducted to study the impact of mudra loans on small and micro enterprises in India.
P. Madhu Kumar Reddy, A. Rama Kumar
Indian Journal of Finance and Banking, Volume 7, pp 38-50; https://doi.org/10.46281/ijfb.v7i1.1343

Abstract:
Agriculture is the solution to the overall development of any country. The internet lasts to become more widespread among people who transact with the agricultural business of any type. The incomplete health crisis about COVID 19 has affected all communities Frontline Health Responders are a priority for countries in saving the lives of the people suffering from this disease. The government has taken action since the Coronavirus hit created an extraordinary situation. India initially announced a three-week nationwide lockdown until the middle of April, after that was extended to achieve satisfactory control of the virus outbreak. In these tough times how Indian farmers react to the crisis and the actions taken by the government to help farmers across the country. The main objective of the study is to analyze the impact of e-commerce on the agricultural sector throughout the Covid 19 pandemic. The study employs samples from farmers of the Warangal and Nalgonda districts. The purpose of the study is to examine the E-commerce sources selected for the agriculture sector and Reasons for using e-commerce in the agriculture and Overall satisfaction on utilization of e-commerce in agriculture sector throughout covid-19. The result reveals that farmers started benefiting from the use of e-commerce in their agriculture. The findings of the study suggest that government should take little more initiation in training and supplying them with agricultural inputs with subsidies. The study briefly explains the Objectives, Hypothesis, Data analysis, Impact, Role, Benefits, and Limitations of E-Commerce in the agricultural sector throughout covid-19.
Sunitha. G, V. Venu Madhav
Indian Journal of Finance and Banking, Volume 7, pp 31-37; https://doi.org/10.46281/ijfb.v7i1.1328

Abstract:
In the financial markets, for investors, lenders, and issuers, credit rating agencies (CRAs) have a critical part in reducing the asymmetry of information between various parties. Credit ratings allow us to recognize the credit impending of a region's individuals. The paper clearly describes the role played in the establishment of a nation by credit rating agencies; there is a rise in new start-ups as all investors are rated favorably. Banks are helping to recognize the investment position of India. The main aim of the study is to analyze the research gap on the impact of credit rating on credit risk with a review of the literature. The study briefly explains the research gap which helps to analyze the factors which are responsible for credit risk. The study analyzes the definitions of basic terms, the origin of credit rating agencies’ objectives, and the scope of the present study and the literature review by assessing the credit rating users and examined the consequence of credit rating agencies on the Indian financial markets. Based on the nationwide and worldwide literature it is found that if the credit history of the investors is good then their credit score would be better and positive. It would also be incredibly convenient to collect loans. Finally, it is concluded that there is a positive impact of Credit Rating on Credit Risk of banking sectors in India.
Serajul Islam
Indian Journal of Finance and Banking, Volume 7, pp 13-30; https://doi.org/10.46281/ijfb.v7i1.1321

Abstract:
The external sources of fund for the micro-finance institutions (MFIs) include various loans and donor’s fund. The loan financing consists of loan from the government, the loan from other micro credit financial institutions, the loan from the commercial bank and the loan from Palli Karma Sahayak Foundation (PKSF). There is the impact of capital resources on the profitability performance. Therefore, it is important for a firm to know about the significant influences of institutional characteristics on external sources of fund. Hence, this study investigates the driven factors of the sources of funds of microfinance institutions, the effect of institutional characteristics on sources of fund especially on external sources. The study is conducted by examining longitudinal data of 169 microfinance institutions (MFIs) from Bangladesh covering a period of six years from 2009 to 2014. This study employs relevant data from the Mix market and Microcredit Regulatory Authority (MRA) annual reports. Results show that a reliance on external sources of the fund (ESF) has a significant correlation with interest rate cap, inflation rate, ROA, number of branches (Size) and age of the MFIs. Donations have a significant correlation with the regularity variable and size of the MFIs. Additionally, apart from location, the rest of the institutional variables significantly influence the external sources of funds (ESF).
Lalitha P S, Kiran Kumar Paidipati, Arvind Kumar
Indian Journal of Finance and Banking, Volume 7, pp 1-12; https://doi.org/10.46281/ijfb.v7i1.1278

Abstract:
The contemporary study focused on the impact of CRM parameters to identify the influencing factors towards customer satisfaction and customer loyalty. A sample of 1200 respondents chosen from public sector (SBI and of Andhra bank) and private sector banks (ICICI and HDFC) using multi-stage random sampling technique through a structured questionnaire. The study employed various statistical tools such as Percentage Analysis for demographical information, bank variables, and the CRM parameters. Mean Ranks for ranking the items and Reliability Analysis applied for obtaining reliable variables in constructing the CRM parameters. Exploratory Factor Analysis (EFA) was performed to identify highly influenced factors of CRM practices to improve level of satisfaction and loyalty in public and private banks. The explored results enlighten directions to the banking sector to provide some operational implications such as proactive involvement from personnel, and customized outreach in engaging customers to reduce the negative word-of-mouth (WOM) and increase the productivity of banks positively. These significant CRM strategies will reduce the attrition rate and improves customer retention in future.
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