| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 11 |
NO. 2 |
PAPER 1 |
DOI: 10.5958/2321-2012.2015.00001.9 |
INVESTIGATING THE EFFECTS OF SECTORAL DIVERSIFICATION OF LOAN AND ADVANCES ON RISK AND RETURN OF INDIAN COMMERCIAL BANKS: POST - FINANCIAL CRISIS OF 2008
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| Jawed Mohammad Shameem*
Tiwari Santosh Kumar**
Dhaigude Amol Subhash***
and
Tapar Archit Vinod****
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| * Research Scholar (Finance & Accounting), Indian Institute of Management, Indore, India |
| ** Research Scholar (Strategic Management), Indian Institute of Management, Indore |
| *** Research Scholar (OM&QT), Indian Institute of Management, Indore |
| **** Research Scholar (Marketing Management), Indian Institute of Management, Indore |
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| This paper seeks to investigate the effects of sectoral diversification of loan and advances on risk and return of Indian commercial banks in the aftermath of the financial crisis of 2008. Forty Indian commercial banks were taken up for the study during the period 2009-2013. Using the Hirschman-Herfindhl Index (HHI) as a measure of diversification, a panel data regression analysis was performed. It is found that the sectoral diversification of loan and advances helps in reducing the bank risk while its impact on bank return was found to be inverted U-shaped. |
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