Impact of Macroeconomic Variables on the Performance of Scheduled Commercial Banks in India
- Country : India
- Subject : Commerce
Keywords : Macroeconomic indicators, Ordinary least square, commercial banks and CAGR
Abstract
The paper examines the impact of macroeconomic factors affecting the performance of Indian scheduled commercial Banks. The objective of the study is to analyse the effect of macroeconomic factors such as 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) on Deposits, Advances & Net Profit of commercial banks. Ordinary least square is used to find the significant relationship among macroeconomic indicators and performance of commercial banks during the study period from 2006 to 2015. On the basis of overall analysis it can be concluded that Foreign Direct Investment, Gross Domestic Product, Stock market Turnover, Exports and Real Interest Rate are relatively more significant and likely to influence the performance of commercial banks in India.
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