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Capital Adequacy and its Relevance to the Indian Banking Sector: A Study of Four Indian Banks

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Author Affiliations

  • 1 Dept. of Mechanical Engineering, BITS Pilani KK Birla Goa Campus NH 17B, Zuarinagar Goa, INDIA
  • 2 Dept. of Economics, BITS PILANI KK Birla Goa, INDIA

Int. Res. J. Social Sci., Volume 2, Issue (11), Pages 1-5, November,14 (2013)

Abstract

The global financial system has not yet attained complete recovery post the financial crisis in the United States, the soft landing in China and the Euro zone crisis. The Indian banking sector has thus far been reasonably well shielded by central banking regulations, but in the current scenario of low growth, persistent inflation, asset quality concerns and increasing interest rates, the investment cycle has been fluctuating leading to a lot of worries. This report analyses the performance of the top Indian banks, both private and public sector for the period FY 2008 – 2012, the years since the last world recession. Our report attempts to demonstrate that the Indian banks exhibit stability in such times of crisis due to their capital structure and regulatory environment.

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