This study aims at assessing the impact of bank capital, bank liquidity and interaction of bank capital and bank liquidity on the credit growth of Indian banks. The sample of the study includes 26 Indian public sector banks, 19 Indian private sector banks and 25 foreign banks incorporated in India. The time frame chosen for the study is from 2004-05 to 2015-16. The dynamic panel Generalized Method of Moments (GMM) system suggested by Blundell and Bond (1998) has been used to assess the impact of banks? capital and banks? liquidity on their credit growth. The results of the study indicate that after controlling for other bank-specific variables and after also controlling for macroeconomic variables, both bank capital and bank liquidity have a positive and significant impact on credit growth. The analysis of the impact of interaction of bank capital and bank liquidity on credit growth indicates that the effect of bank capital on credit growth is higher for banks which are less liquid than for banks which have high liquidity. The results further show that the impact of both bank capital and bank liquidity is higher for public sector banks than for private sector and foreign banks.

The Indian financial system consists of various financial institutions, of which commercial banks play an active role in the development of the country?s economy as a whole. The present paper attempts to study the impact of Non-Performing Assets (NPA), capital adequacy to risk-weighted assets and liquidity on the operational performance [termed as Return on Assets (ROA)] of scheduled commercial banks in India. ROA is taken as the dependent variable. The time-series data has been collected for scheduled commercial banks (consisting of 27 public sector, 25 private sector and 45 foreign banks) in India for the period 1997-1998 to 2016-2017. The study uses Augmented Dickey-Fuller Test to check the stationarity of data. To measure the cointegrating relationship between dependent and independent variables, Johansen cointegration model has been used. The study finds that there is a long-run causality between dependent and independent variables with negative coefficients for NPA and liquidity.

In recent years, stock markets have gained importance as an investment option; commodity markets along with foreign exchange markets too have gained equal importance. Moreover, macroeconomic news has long been considered to play a key role in the pricing of securities. This is true in the case of developing nations, as the limits imposed through macroeconomic interdependence place a burden on their socioeconomic and political base. This impact of announcement on stock market prices (returns), foreign exchange rates (returns) and commodity markets (returns) has been well studied in financial economic literature, than on the volatility of financial markets. Thus, the study using GARCH models tries to analyze the impact of scheduled macroeconomic variables announcement on the volatility of markets, which would be well known to the investors in advance. The results indicate that among the six scheduled macroeconomic variables considered for the study, GDP announcement reduces the volatility of stock market and foreign exchange market. Similarly, inflation announcement reduces the volatility, and index of industrial production increases the volatility of foreign exchange market. Also, fiscal deficit announcement increases the volatility in both commodity market and foreign exchange market. Hence, it is suggested that investors keep a close watch on these significant announcements, so that they can take advantage of price changes (returns) in each market which will have an effect on their portfolio returns.

The paper, through a comprehensive literature survey, attempts to derive some conclusive results regarding the effects of bonus issue announcement on the capital market. The in-depth review of worldwide studies indicated the presence of abnormal returns around the bonus issue announcement, confirming the signaling hypothesis. The findings also suggested the enhanced liquidity and volatility around this event. Some of the studies confirmed an improvement in the post-bonus issue operating performance. The literature also supported the argument of positive relationship between the share price and the quantum of bonus announced. Though theoretically the bonus issue announcement is considered to be a cosmetic event that does not create any value for the shareholders, the literature empirically supported the various arguments against this theory. The contribution of this paper is to provide clarity in this regard to financial analysts and investors.