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
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- EP ID EP625775
- DOI 10.17492/mudra.v5i2.14432
- Views 225
- Downloads 0
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