A Detailed Analysis for the Identification of Risky Sectors

The aim of this study is to rank branches under different zones of a Non-Banking Financial Institution based on probability of advances becoming Non Performing Asset (NPA) using Markov Chain analysis and to correlate the same with the rank based on amount of loan disbursed for each sector in a zone...

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Bibliographic Details
Published inJournal of finance, accounting, and management Vol. 7; no. 1; p. 1
Main Authors Rajeev, K S, Subramoniam, Suresh
Format Journal Article
LanguageEnglish
Published Beverly Hills Global Strategic Management Inc 01.01.2016
Subjects
Banking industry
Banks
Branch banking
Financial institutions
Markov analysis
Probability
Public sector
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Summary:The aim of this study is to rank branches under different zones of a Non-Banking Financial Institution based on probability of advances becoming Non Performing Asset (NPA) using Markov Chain analysis and to correlate the same with the rank based on amount of loan disbursed for each sector in a zone using Spearman's Rank Correlation Test. This is to identify the problem sectors coming under each zone which will help exercise more caution in granting advances for certain sectors that are concluded as problem sectors.
ISSN:2153-2818
2153-2826