Table 1 Description of variables used in the study
From: NPAs and profitability in Indian banks: an empirical analysis
Notation | Variable | Description | Expected effect |
|---|---|---|---|
Dependent variable ROA | Profitability | Ratio of Net Income to Total Assets (%) | Â |
NNPA | Net Non-Performing Assets | Ratio of Net NPA to Net Advances (%) | Negative |
lnTD | Total deposit | Natural Logarithm of Total Deposit | Positive |
NII | Non-Interest Income | Ratio of Net Interest Income to Total Income (%) | Positive |
II | Interest Income | Net Interest Margin (%) | Positive |
OCTII | Operating Cost | Ratio of Operating Cost to Total Interest Income (%) | Negative |
CapT1 | Capital Adequacy | Tier 1 capital as per Basel norm (%) | Positive |
GDPGr | GDP growth rate | Annual Economic Growth rate (%) | Positive |
INF | Inflation | Annual rate of Inflation (%) | Positive |
IR | Interest rate | Annual Average Repo Rate (%) | Positive |