Date: October 2, 2020
Time: 4-5 pm
Title: Modelling the Twin-Balance Sheet Characteristics of India’s Banking Crisis
Abstract:
In recent years, the Indian banking sector has attracted enormous attention from academia and regulators to understand the nature and causes of the banking crisis (2016), which started with the Asset Quality Review (AQR) conducted by the Reserve Bank of India (RBI). The AQR process forced the banks to acknowledge the bad assets and bad borrowers. In February 2016, the shock wave of unprecedented losses reported by banks had impacted the real economy. The banking crisis also had spillover effects on the Non-banking financial industry and the consequent merger of banks. This study attempts to explore the Indian banking crisis (2016) and its Twin-Balance Sheet (TBS) characteristics by measuring the degree of interconnectedness between banks (both public and private) and Deep-in-Debt Firms (DDFs). Considering the riskiness of banks and DDFs under the quantile-based network setup, we find the evidence of high interconnectedness. Among banks, Yes Bank, Axis Bank, and Bank of Baroda are the systemically vulnerable banks, while Videocon, Lanco, and GMR are highly sensitive firms.
Profile:
Dr. Ahmad is currently pursuing research in the areas of emerging markets finance, finance and investments in clean energy and risk spillover analysis. He did his PhD from Delhi University in 2014. Prior to joining IIT Kanpur, he was working as Assistant Professor at Vinod Gupta School of Management, IIT Kharagpur. He has won numerous awards and honours like Subir Chowdhury Post-Doctoral Fellowship 2019-2020 at London School of Economics (LSE), PK Kelkar Young Research Fellowship 2019-2022, RBI Faculty Scholarship 2018, Prof MJ Manohar Rao Award (Young Economists Award) by The Indian Econometric Society (TIES) among others. He has published in reputed journals like Economics Letters, Energy Economics, The Quarterly Review of Economics and Finance, Economic Modelling, International Review of Financial Analysis and Emerging Markets Review among others.
