Indian Journal of Finance and Banking

IMPACT OF PRADHAN MANTRI JAN DHAN YOJANA PROGRAM ON ACCESS TO CREDIT

2023-11-08T16:47:45+00:00

This research paper investigates the impacts of the Pradhan Mantri Jan Dhan Yojana (PMJDY) program on access to credit for individuals living below the poverty line in India since its inception in 2014. The PMJDY initiative aims to enhance financial inclusion and alleviate poverty by providing banking services and credit access to marginalized populations. The paper begins with a comprehensive literature review, tracing the historical context of financial inclusion in India, the evolution of policies, and previous research on the subject. It then delves into the PMJDY program's features, implementation, and progress, highlighting its efforts to offer zero-balance accounts and overdraft facilities. The paper employs regression analyses, both at the national and district levels, to examine the relationship between various factors, such as GDP per capita, population density, literacy rates, and PMJDY adoption. These analyses had shed light on the success of the PMJDY program in advancing financial inclusion throughout different regional dynamics. The findings provide insights into the program's effectiveness in improving credit access for the economically disadvantaged. Ultimately, this research contributes to the ongoing discourse on financial inclusion and informs policymakers on strategies to combat poverty and foster inclusive economic growth especially with policies relating to credit access.

JEL Classification Codes: C00, B21, G18, G53.

EQUITY PRICE DETERMINANTS OF INDIA'S NIFTY NEXT 50 INDEX FIRMS'

2023-12-17T14:25:01+00:00

An investor must perform research on a stock before investing in it. It becomes critical for a financially savvy investor. As a result, stock prices have long been a source of attraction. Researchers have worked hard to identify the elements influencing stock prices and returns. This paper is an attempt to identify the factors predicting the market price of Equity in India. The secondary data about 2017 to 2022 of NIFTY's Next 50 index companies is analyzed using OLS regression. The findings of the regression are ratified through a qualitative approach by the semi-structured open-ended survey and interviewing experts. The obtained responses are transcribed and coded. Matrix coding has been performed using a qualitative tool such as NVivo to understand the pattern of codes. The study finds that dividend rate, book value, and return on net worth are statistically significant and positively influence the market price of sample firms. Debt to equity ratio has a negative impact on market price. Economic value added (EVA) was found to be a new variable that significantly impacted the market price of shares. The study findings are helpful to the market participants to make wise and knowledge-based investment decisions. The study's findings will also add to the existing body of knowledge regarding stock valuation.

JEL Classification Codes: C53, C55, G12, G17, O16.

CAMEL MODEL ANALYSIS AND DISCRIMINANT ANALYSIS OF COMMERCIAL BANKS’ PERFORMANCE IN GUYANA, SOUTH AMERICA

2023-12-22T14:37:30+00:00

The study evaluates the performance of commercial banks in Guyana using prudential ratios that capture the five essential dimensions of a bank’s operation. It applies the CAMEL rating system and Linear Discriminant Analysis on quarterly prudential ratios of all the commercial banks that operated in Guyana between 2017 and 2021. The CAMEL analysis reveals that Demerara Bank Limited (DBL) is the best-performing bank, and the Guyana Bank for Trade and Industry (GBTI) is the worst-performing bank. However, the one-way ANOVA technique suggests no significant differences between the average values of the prudential ratios in the CAMEL model. Based on the Linear Discriminant Analysis, only four ratios differentiate between good-performing and poor-performing banks. These findings provide valuable insights to regulators that employ these tools to identify poor-performing banks to safeguard the stability and soundness of their domestic banking system. By applying the CAMEL rating system and Linear Discriminant Analysis simultaneously in Guyana, an emerging economy in the Caribbean, for the first time, the study contributes to the literature that utilizes these tools to assess the performance of commercial banks.

JEL Classification Codes: G21, G24, L25.

TO INVESTIGATE THE TREND AND EXPANSION OF PRIVATE EQUITY INVESTMENT IN INDIA

2024-01-20T11:58:31+00:00

This paper delves into India's burgeoning realm of private equity investment, examining its growth trends, sectoral preferences, and risk profile. Utilizing log-lin regression analysis of detailed data from 2012 to 2022, we unveil insights into deal value and volume for investments and exits. Our findings paint a nuanced picture. While India presents compelling opportunities, it also harbours inherent risks for private equity players. Notably, 2020 witnessed the highest influx and divestment of capital, highlighting the dynamic nature of the market. Construction, information technology, and real estate are the hottest sectors, attracting significant investor attention. The quantitative analysis reveals a steady annual growth of 5.4% in private equity investment value, further bolstered by a notable 3.4% weekly increase. These robust figures solidify India's position as a burgeoning private equity hub. Furthermore, we venture beyond historical patterns, offering valuable predictions for the next ten years. This vital forecast equips investors and stakeholders with critical insights to navigate the evolving landscape of Indian private equity. In conclusion, this study comprehensively analyses private equity's rise and inherent risks within the Indian context. Through data-driven insights and future projections, it empowers informed decision-making and strategic planning for navigating the promising yet dynamic realm of private equity in India.

JEL Classification Codes: E22, L16.