Search results

In recent years, the Indian banking sector is facing a major cause of concern in the form of Nonperforming Assets (NPA), and the priority sector lending (PSL) is generally recognized as the major factor contributing to it. Thus, the present study has been carried out with the objective of examining the relationship between priority sector lending and GDP growth. Thereafter, the role of PSL and certain other bank-specific, industry-specific and macroeconomic variables in determining NPA has been studied.

Taking a sample of 45 scheduled commercial banks, the study has been carried out for 14 years (2004–2018). Granger causality between PSL and GDP has been examined by applying the Dumitrescu-Hurlin test. For the purpose of investigating the impact of PSL and other determinants on NPA, both static and dynamic panel regression have been performed. Under the dynamic panel, system generalized methods of moments (S-GMM) approach has been followed.

The findings show that there exists a positive correlation and bidirectional causal relationship between PSL and GDP, which implies that PSL brings additional growth for the whole economy. In addition to it, PSL is found to be insignificant for the NPA ratio, and thus, it can be inferred that credit extended to government-specified sectors does not bring any major increase in the bad loan portfolio of banks.

The policymakers and bank management can take a cue from the findings of this study to decrease the exposure to loan nonrepayment issue. The priority sectors are in need of formal credit for their growth, and since the rising population of the country can find employment in these sectors, banks should meet their credit needs while securing their position with regard to the NPA problem.

The issue of NPA determinants, and in particular, the contribution of priority sector lending in it has not been much explored for Indian banking sector. Also, the present study adds to the literature by using the causality approach for examining the importance of directed credit schemes for economic growth.

The purpose of this paper is to determine the heat transfer and fluid flow characteristics of an internally finned tube for different flow conditions.

Numerical investigation have been performed by solving the conservation equations of mass, momentum, energy with two equation-based k-eps model to determine the wall temperature, outlet temperature and Nusselt number of an internally finned tube.

It has been found from the numerically investigation that there exists an optimum fin height and fin number for maximum heat transfer. It was also found that the heat transfer in T-shaped fin was highest compared to other shape. The saw type fins had a higher heat transfer rate compared to the plane rectangular fins having same surface area and the heat transfer rate was increasing with teeth number. Keeping the surface area constant, the shape of the duct was changed from cylindrical to other shape and it was found that the heat transfer was highest for frustum shape compared to other shape.

The present computations could be used to predict the heat transfer and fluid flow characteristics of an internal finned tube specifically used in chemical and power plants.

The original contribution of the paper was in the use of the two equation-based k-eps turbulent model to predict the maximum heat transfer through optimum design of fins and duct.