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Analysis of fluctuations in Credit-Deposit Ratio of Indian States: From Pre-Globalization to Post-Financial Crisis Phase

Analysis of fluctuations in Credit-Deposit Ratio of Indian States: From Pre-Globalization to Post-Financial Crisis Phase
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Author(s): Ramesh Chandra Das (Vidyasagar University, India)and Utpal Das (Katwa College, India)
Copyright: 2019
Pages: 17
Source title: Handbook of Research on Managerial Thinking in Global Business Economics
Source Author(s)/Editor(s): Hasan Dinçer (Istanbul Medipol University, Turkey)and Serhat Yüksel (Istanbul Medipol University, Turkey)
DOI: 10.4018/978-1-5225-7180-3.ch013

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Abstract

Under the backdrop of the liberalization and globalization policies undertaken by the Indian government and the outbreak of the global financial crisis, the present chapter tries to study the trends, fluctuations, and ranking of the credit-deposit ratio of the Indian states for the period 1972-2015 comprising pre-globalization to post-financial crisis phase. Applying descriptive statistics, product moment and rank correlation coefficients, and student's “t” test and “F” tests, the results show that there are significant increases in the credit-deposit ratios of most of the states during the phase of financial as well as post-financial crisis phase compared to pre-globalization and post-globalization periods, but there were significant fluctuations in credit-deposit ratio in the financial crisis and post-financial crisis phases. Further, the rank correlation results show that the states maintained almost similar ranks in their credit-deposit ratios for the phases of pre-globalization, post-globalization, pre-financial crisis, and post-financial crisis. The study, thus, suggests that the Indian banking sector has not been affected adversely.

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