Impact of banks’ lending on their sustainability: Indian evidence

Authors

  • Himanshu Department of Management Studies, Netaji Subhas University of Technology, New Delhi, India
  • Sumit Kumar Bansal Department of Commerce, Atma Ram Sanatan Dharma College, University of Delhi, New Delhi, India

Abstract

The objective of the paper is to examine the effect of lending function on sustainability of Indian banks in long run. Two variables, namely, return on equity (ROE) and return on assets (ROA) are used to measure long term profitability and sustainability. The paper is based on secondary data, collected from RBI publications, websites, and Bloomberg database. Indian banks are considered for study. OLS linear regression model is used. The paper reveals that lending growth is positively related to long term sustainability. There is significant relation between (i) ROA and ROE and (ii) ROA and deposit growth. Deposit and loan growth have not significant effect on ROE and ROA. In long run, the sustainability of banks is significantly affected by lending function.

References

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Published

2024-03-30

How to Cite

[1]
Himanshu and S. K. Bansal, “Impact of banks’ lending on their sustainability: Indian evidence”, J. Soc. Rev. Dev., vol. 3, no. Special 1, pp. 25–29, Mar. 2024.

Issue

Vol. 3 No. Special 1: Global Partnership: India's Collaboration Initiatives for Economic and Social Growth

Section

Articles

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Copyright (c) 2024 Himanshu, Sumit Kumar Bansal

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This work is licensed under a Creative Commons Attribution 4.0 International License.