Bank Recapitalisation Announcement: A Comparative Study of Select Public and Private Banks
Journal Title: MUDRA: Journal of Finance and Accounting - Year 2018, Vol 5, Issue 2
Abstract
During past few years a rapid increment in the non-performing assets has triggered the threat of under-performance among the banks. To restore the financial health of banks, the government of India infused Rupees 2,11,000 crore as a recapitalisation funds in PSBs. The present research focuses on the announcement of bank recapitalisation declared on October 24th, 2017 by Indian government. The study comparatively analysed the stock prices of selected twelve Indian banks, which comprises of seven public sector and five private sector banks which are traded on the floor of BSE. The event study technique is used to estimate abnormal returns during 31 days event window. The finding research reflected that out of 12 banks, 7 PSB reflected significant positive results and two banking stocks negative insignificant results on the event. The conclusion of the research remarked that investors can maximize their wealth by making appropriate investment decision in such events.
Authors and Affiliations
Rajit Verma, Kulwant Kumar Sharma
Keywords
Related Articles
- EP ID EP625775
- DOI 10.17492/mudra.v5i2.14432
- Views 210
- Downloads 0
Impact of Macroeconomic Variables on Small, Mid and Large Cap Stocks: A Comparative Study of India Using VAR Approach
The study examines and compares the relationships between Indian stock market indices (BSE Small, Mid and Large Cap) and five macroeconomic variables (Index of Industrial Production, Wholesale Price Index, Money Supply M...
Fundamental Research Analysis of Real Estate Sector: A Case Study of IRB Infrastructure and Developers Ltd.
Fundamental analysis is true to its name in being a fundamental research tool to explore the potential of a particular industry or company which can be very helpful in making investment decision. It can also be used to f...
A Case Study of Ageing People: Real Life Scenario and Future Challenges
With people having longer lives, the share of older people in the total population is expanding rapidly, leading many retirees to face a challengeable life. Support from government and family are being reduced for the ol...
Pivotal Facets of Distribution Channels in Travel Insurance: A Qualitative Reportage
Travel insurance as an ancillary service emerged few decades ago. In the present day, it has been bolstered up as a core function owing to the tremendous surge experienced by the global travel and tourism industry couple...
Literature Review of Life Insurance Markets: Developing a New Perspective to improve the Indian Market
Despite of being the second most populous country, India’s life insurance penetration and density (the two accepted parameters of performance) are low. To look at the causes of underperformance of this vital market, the...