A Study of Macroeconomic Drivers on the Performance Efficiency of India’s Scheduled Banking Sector

Author(s)	Sushma Karnati
Country	India
Abstract	This study examines the influence of key macroeconomic variables on the performance of Indian scheduled commercial banks, focusing on deposits, advances, and net profit. The research specifically analyzes the impact of Foreign Direct Investment (FDI), Gross Domestic Product (GDP), Exports, Foreign Exchange Reserves (FER), Stock Market Turnover (STV), Inflation Rate (INFR), and Real Interest Rate (RIR) over the period 2006–2015. Employing the ordinary least squares (OLS) regression method, the study identifies statistically significant relationships between these macroeconomic indicators and bank performance metrics. The findings reveal that FDI, GDP, STV, Exports, and RIR exert a substantial influence on the operational outcomes of commercial banks in India, highlighting their critical role in shaping the banking sector’s financial health. These results provide valuable insights for policymakers and banking institutions seeking to align strategies with macroeconomic trends to enhance stability and growth.
Keywords	Macroeconomic indicators, Ordinary least square, commercial banks and CAGR
Published In	Volume 7, Issue 1, January-June 2016
Published On	2016-04-07
Cite This	A Study of Macroeconomic Drivers on the Performance Efficiency of India’s Scheduled Banking Sector - Sushma Karnati - IJAIDR Volume 7, Issue 1, January-June 2016.

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