Dr.DEBESH BHOWMIK

Dr.DEBESH BHOWMIK

Friday 26 August 2016

UGC Seminar at Shri Shikshayatan College,Kolkata



UGC Seminar at Shri Shikshayatan College,Kolkata


Shri Shikshayatan College,Department commerce organized a one day UGC sponsored national seminar on “Contemrary Issues in Finance,Management and Economics” in collaboration with The Institute of Cost Accountant of India on 26th August,2016,Kolkata.
The seminar was inaugurated by G.K,Khaitan,President of the governing body.Welcome address was given by the Principal Dr.Aditi Dey.CMA Manas Kumar Thakur,President,ICAI,and CMA Avijit Goswami,chairman of Research Journal and IT Committee impressed by their lectures.
In the plenary session-1, Under the Chairmanship of  Prof.Dipti Kumar Chakraborty,Department of Commerce ,University of Calcutta,Dr.Ashish Kumar Bhattacharjee of Indian Institute of Corporate Affairs,gave his key note address efficiently.Dr.Debaprosanna Nandy,Director of Research and Journal,ICAI,also gave lectures.In the Plennary session-2,under the chairmanship of Prof.Dhruba Ranjan
Dandapat of Calcutta University,Prof.Shankarshan Basu of IIM,Bangalore give his key note address on Indian Capital Market where he emphasized on corporate India,gold asset,role of investor’s class,exchange,financial indicators,FDI,growth vs distribution,and basic needs fulfillment.CA,Sumit Binani-the SBAC and Associates and Director,Value Consultancy Pvt.Ltd.told in his address on GST,tax structure,CSR and transport.Prof,Kanika Chatterjee of Calcutta University spoke on “Sustainable Business and Education for a Regeration Economy:A Post 2015 Global Development Perspective”.In the Technical Session:Track1A on the theme of Finance And Economics,there are 10 papers from various colleges in West Bengal.This session is chaired by Dr.Tanupa Chakraborty,Prof. of Calcutta University.In Track1B on the theme Finance and Economics there are 6 papers presented so far.I had a paper on “Non Performing Assets and its relation with advance ,lending rate and GDP in Indian Banking System”.This session is chaired by Dr.Ram Prahlad Chowdhury,Prof. of Calcutta University.In Track-2,there were 9 papers presented so far.This session is chaired by Prof.Rajib Dasgupta,of Calcutta University.
The seminar ends with a grand success with high academic value.
NON PERFORMING ASSETS AND ITS RELATION WITH ADVANCE,LENDING RATE AND GDP IN INDIAN BANKING SECTOR
Dr.Debesh Bhowmik

Abstract
The paper studied the trend and behavior of gross NPA of schedule commercial banks,public sector banks ,new private banks and foreign banks in India during 1996-97-2013-14 and searched the relationship among gross NPA, gross advance, lending rate and GDP at factor cost at current prices for all four groups of banks using semilog and double log regression model, Bai-Perron (2003) structural break test, Johansen cointegration test and VEC model(1988,1996). The paper concludes that in schedule commercial bank in India ,gross NPA is increasing at the rate 6.62% per year during 1996-97-2013-14 in which there is one structural break and is significantly negatively related with GDP and lending rate and significantly positively related with gross advance. Those four variables are cointegrated with two cointegrating equations.Its VEC model is unstable having two significant error corrections with diverging impulse response functions.
In public sector bank in India, gross NPA is increasing at the rate 6.06% per year during 1996-97-2013-14 in which there are four structural breaks and are significantly negatively related with GDP and lending rate and significantly positively related with gross advance.Those four variables are cointegrated with two cointegrating equations. Its VEC model is unstable having two significant error corrections with diverging impulse response functions.
In new private bank in India, gross NPA is increasing at the rate 23.48% per year during 1996-97-2013-14 in which there are four structural breaks and are significantly negatively related with GDP and insignificantly with lending rate and significantly positively related with with gross advance.Those four variables are cointegrated with three cointegrating equations. Its VEC model is unstable having no significant error corrections with diverging impulse response functions.
In foreign bank in India, gross NPA is increasing at the rate 9.53% per year during 1996-97-2013-14 in which there are three structural breaks and are insignificantly negatively related with GDP and lending rate and significantly positively related with gross advance.Those four variables are cointegrated with one cointegrating equation. Its VEC model is unstable having one significant error correction with diverging impulse response functions.
Key words- Non performing assets, cointegration, vector error correction, structural breaks
JEL-C23,E51,G01,G21