International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

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

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)


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.


  1. Sumit K. Majumdar and Pradeep Chhibber, Capital structure and performance, Evidence from a transition economy on an aspect of corporate governance, Public Choice 98, 287-305 (1999)
  2. Susan E. Moyer Capital Adequacy ratio regulations and accounting choices in Commercial Banks, Journal of Accounting and Economics, 13(2), 123-154 (1990)
  3. Pathania Rajni, Linkages between exports, imports and Capital formation, International Research Journal of Social Sciences, 2(3), 16-19 (2013)
  4. Richard H. Pettway, Market Tests of Capital Adequacy of large Commercial Banks, The Journal of Finance,XXXI(3), 1976
  5. Jurg Blum, Do Capital adequacy requirements reduce risks in banking?, Journal of Banking and Finance, 23(5),755-771(1999)
  6. Edward Altman, Anthony Saunders, An analysis and Critique of the BIS proposal on capital adequacy and ratings, 25(1), 25-46 (2001)
  7. V. Sundararajan, The Debt to Equity ratio of firms and the effectiveness of the interest rate policy: Analysis with a dynamic model of saving, investment, and growth in Korea, IMF staff Papers,34, 260-310 (1987)
  8. Jurg Blum, Martin hellwig, The Macroeconomic implications of Capital Adequacy for banks, European Economic Review, 39(3-4), 739-749 (1995)
  9. Ehud I Ronn and Avinash Verma, Risk-based capital adequacy standards for a sample of 43 major banks, Journal of Banking and Finance, 13(1)21-29 (1989)
  10. Safdari Mehdi and Ramzan Gholami Avati, Investigating the Asymmetric Effects of Government Spending on Economic Growth, Research Journal of Recent Sciences, 1(5), 51-58 (2012)
  11. Rizvi Syed Kumail Abbas et al, Inflation Targeting as a Plausible Monetary Framework for India, Research Journal of Recent Sciences, 1(12),74-78 (2012)
  12. Rifaat Ahmed Abdel Karim, The impact of the Basle capital adequacy ratio regulation on the financial and marketing strategies of Islamic banks, International Journal of Bank Marketing, 14(7), 32 44(1996)
  13. Mirza Nawazish and Saeed Mawal Sara, Time Varying Stock Market Volatility: The Case of an Emerging Market, Research Journal of Recent Sciences, 1(11), 41-46 (2012)
  14. Aggarwal Vijender et al, Micro Finance and Risk Management for Poor in India, Research Journal of Recent Sciences, 1(2), 104-107 (2012)