The Impact Of Inflation On Loan Repayment In India

Abstract

The macroeconomic conditions for non-performing loans are seen as a major driver. Although studies in the past have shown various other reasons responsible for the repayment of loans, the principal objective of this study is to check whether inflation has an impact on the repayment of loans in nationalized Indian commercial banks. This study will be conducted from data collected from SBI and its’ associate banks and all the nationalised banks in India. The examination will use essential information sourced mostly from the financial statements of these banks for a range of five years (2014-2019). The inflation figures will be taken from the Reserve Bank of India. The research will be based on an analysis of literature based on this topic and will try to find out the leading intermediate causes which might link these two phenomena. This investigation will lead us to understand the connecting dots between inflationary pressures and non-performing assets of commercial banks thereby guiding policy actions