A study on usage of interest rate derivatives and its impact on indian commercial banks

Chetan Shetty and Anitha S Yadav

The present study makes an effort to provide a comprehensive profile of the international financial derivatives market, with special reference to interest rate derivatives. It has evaluated various issues related to interest rate derivatives in Indian commercial banks. The present research paper would also explore the relationship between interest rate derivatives and Indian commercial banks profitability. To serve this particular objective the study is based on 17 commercial banks i.e. 10 Nationalized Banks, 2 SBI & Associates and 5 Private Banks. Different variables such as Total Asset Size, Qualitative assets, Capitalization, Profitability, Interest Rate Risk (IRR), Interest rate derivatives, etc. have been evaluated for the year 2015 with the help of statistical tools such as Multiple Linear Regression model and ANOVA to find out the extent to which these banks have managed profitability with the help of interest rate derivatives (IRD).

Download PDF: 
DOI: http://dx.doi.org/10.24327/ijcar.2017.8519.1376