*Associate Professor, ZES's Zeal Institute of Business Administration, Computer Application & Research, (Formerly Dnyanganga Institute of Career Empowerment & Research), Narhe, Pune
**Principal, SNDT Art & Commerce College for Women, Pune
Online published on 24 October, 2019.
Net Interest Margin (NIM) of commercial banks varies from economy to economy due to variation in country, industry and firms specific factors. This study aims to assess and identify the determinants of NIM in the Indian Banking Industry. The data has collected from annual reports of selected Bank for the period 2008 to 2017 and MS Excel has been used for analysis of data. In this study, assessment was made to identify determinants of NIM, which is the ratio of net interest income to earning assets using panel data. The results of the study revealed that cost efficiency, implicit interest payment, competition, and scale efficiency have positive and significant effect on NIM. However, liquidity risk and management efficiency has negative and significant effect on NIM. On the other hand, credit risk, interest rate risk, capital risk, inflation and economic growth do not seem to have significant impact on banks’ performance.
Net Interest Margin, Banking Industry, Macroeconomic Variables, Banking Performance
