National Institute of Bank Management, Pune

(An Autonomous Apex Institute Established by RBI & Banks)

( Registered as a Society under the Indian Societies Registration Act 1860
Recognized as a scientific and Industrial Research Organization by Department of Scientific
and Industrial Research, Ministry of Science and Technology, Government of India )

Latest Issue

October-December 2019
No. 3




Bank Consolidation in India : An Empirical Study to Identify Leading Indicators of Acquired Banks

Onkar Shivraj Swami, Arindam Sarkar & Jyoti Prakash Sharma

In this paper, we try to study the determinants associated with the likelihood of a bank being acquired during 2006 to 2017. Study sample consists of fourteen acquired and five acquiring banks.  Pooled logit model is employed to identify the bank-specific determinants that can predict probability of bank being acquired. We find that higher capital adequacy, poor asset quality, reduced profitability, operating inefficiencies, adequate liquidity position and smaller asset size may serve as leading indicators in order to identify the bank who is expected to be acquired well in advance.


Antecedents of adoption of Mobile Banking by the Generation Y Consumers

Sreelakshmi C C & Sangeetha K Prathap

The purpose of this paper is to identify antecedents of attitude towards mobile banking adoption by generation Y consumers.  The proposed model has assimilated factors from the theory of Diffusion of Innovation along with trust and perceived risk. Data were collected through an online survey questionnaire completed by 310 generation y consumers of mobile banking. The collected data were analysed using structural equation modelling.  The paper identifies three major antecedents to the attitude towards mobile banking adoption, viz., trust, compatibility and relative advantage. The study also confirmed the significant negative causal relation between perceived risk and trust. The other two innovation characteristics, complexity, and trialability were found insignificant in predicting attitude towards mobile banking adoption.

By identifying the antecedents of attitude towards mobile banking by generation Y consumers, banks and service providers will be able to design products in accordance with customer preferences.  Through a multi-faceted framework, the study extends the literature on innovation acceptance, exploring the factors influencing attitude towards mobile banking. The paper also builds a causal relation between perceived risk and trust in technology adoption.


Achieving the Target of complete Financial Inclusion in India through Financial Technologies

Arindam Sarkar & Onkar Shivraj Swami

Financial Inclusion (FI) is yet to be completely achieved in India as substantial numbers of people are still out of formal financial system. Progress in Financial Technologies  (FinTech) gives an opportunity to financially include these segments of Indian economy where traditional models of banking and finance could not reach. The study aims to identify these segments of financially excluded population or transactions of Indian economy, which can be catered by formal financial institutions through the use of financial technologies. It applies Logistic Regression (Logit) Model on micro-unit level Global Findex data collected for India by World Bank, to measure the significance of different variables used in the study. It identifies different segments of population and transactions in India through various demographic, exclusion, cash and non-cash transaction variables, where accounts can be opened and used regularly with the help of financial technologies to make the financial inclusion initiative, a sustainable one.


Linkages between Futures and Spot Prices: A Study of Bombay Stock Exchange Sensitive Index (BSE)

Manjinder Kaur

Study aims at determining lead-lag relationship and price discovery mechanism between spot market and futures market based upon daily closing values of Sensex prices (SS) and Sensex  based futures prices (FS) spanning  June 12, 2000 to March 31, 2016. Spot and futures prices are cointegrated, confirming long-run relationship between the two series. VECM reveal that in short-run there exists bi-directional causality between futures market and spot market. However, same could not be traced within the spot market prices for their immediate past prices in the short-run. Further, error correction term has turned negative and significant for futures market while positive and significant for spot suggesting that both futures and spot prices respond to correct volatility shocks in the long-run. However, long-run causality is more pronounced from futures to spot, thus futures have greater contribution to price discovery and equilibrium correction in long run. 


Book Reviews


The Whole Brain Leader –  8 Dimensional Approach

Ingvar Jonsson & Sjoerd De Waal

New Delhi, Sage Publications India Pvt. Ltd., 2018, xxviii + 200 pp, Rs. 395.

Reviewed by Shri B V Chaubal, Visiting Professor, National Institute of Bank Management, Pune and Former Deputy Managing Director, State Bank of India.


Transformation of Public Sector Banks in India – The Challenges in the Journey

K Srinivasa Rao

Chennai, Notion Press, 2019, 278 pp, Rs. 499.

Reviewed by Dr Arindam Bandyopadhyay, Editor, Prajnan, National Institute of Bank Management, Pune.


National Institute of Bank Management NIBM Post Office, Kondhwe Khurd
Pune 411 048, INDIA



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