Contact Us

WORKING PAPERS

NIBM working paper series is an initiative to disseminate the initial research outcome of NIBM faculty members. The major research areas are Finance, International Finance, Credit Risk, Market Risk, Operational Risk, Treasury, Agricultural Finance, Economics, Marketing, Strategy, Operations Management, Analytics, Information Systems, and Human Resource Management within the broad areas of banking and finance. These research works are not peer-reviewed. The idea is to share the research outcomes to receive comments and suggestions. Some of the papers are expected to be under review for possible publications in peer-reviewed journals. Any citation of these research papers requires to mention of the appropriate URL with the source, and the date of access.


Select Type Of Paper

Paper Number:  WP32/2023
Publication Year:  August 2023

INR Internationalization: A Process and Not an Event

Authors:   Gargi Sanati, gargi@nibmindia.org

India's external sector has grown significantly through economic liberalization reforms, resulting in increased trade and capital flow ties with the world. The Inter-Departmental Group (IDG) of the Reserve Bank of India has been formed to discuss the internationalization of INR. The group recently submitted its report on October 22, …

Read More

Paper Number:  WP31/2023
Publication Year:  August 2023

Operational Risk Management in Transition – The Recent RBI Master Direction on Minimum Capital Requirement

Authors:   Richa Verma Bajaj, richa@nibmindia.org

The Reserve Bank of India, Master Direction on Minimum Capital Requirement for Operational Risk (OR), released on June 26, 2023, replaces all the existing Basel II risk approaches. The capital estimation in the new and revised approach, i.e. Standardised Approach (SA) of Basel III is based upon the financial …

Read More

Paper Number:  WP30/2023
Publication Year:  August 2023

Digital Lending and Default Loss Guarantee

Authors:   Dr Tasneem Chherawala & Dr Alka Vaidya

The digital lending industry has seen a remarkable growth in India over last few years. The Reserve Bank of India (RBI) has played a crucial role in supporting this initiative by establishing regulations and providing timely guidelines on digital lending to various regulated entities. The latest directive by RBI …

Read More

Paper Number:  WP29/2023
Publication Year:  June 2023

Financial Instability, Credit Growth and Optimal Monetary Policy Design

Authors:   Sanjay Basu, sbasu@nibmindia.org
Tasneem Chherawala

An increase in policy rates, in order to control inflation, may lead to a credit crunch, slowdown in economic growth and spurt in non-performing loans. In this paper, we explore the impact of policy rate shocks on the volume and cost of bank credit, in an imperfect competition framework. …

Read More

Paper Number:  WP28/2023
Publication Year:  June 2023

Green Deposits Acceptance Framework: Fostering a Green Finance Eco-system

Authors:   Sarita Bhatnagar, sarita@nibmindia.org
V S Kaveri

Access to finance is crucial to catalysing the measures needed to achieve net zero targets and a systematic transition to a low-carbon economy. Reserve Bank of India’s Framework for Acceptance of Green Deposits has provided a fillip to the development of a green finance ecosystem in India. Banks can …

Read More

Paper Number:  WP27/2023
Publication Year:  June 2023

Unlocking Potential: Reinforcing the SHG-BLP through Collaborative Efforts and Innovative Lending Mechanisms

Authors:   Naveen Kumar K, naveen@nibmindia.org

The revised RBI notification on the Self-Help Group Bank Linkage Program (SHG-BLP) provides a roadmap for strengthening and enhancing the program's effectiveness in the banking and financial sector. The key measures to be taken include strengthening collaboration with government agencies and NGOs, innovating lending mechanisms to cater to diverse …

Read More

Paper Number:  WP26/2023
Publication Year:  June 2023

Estimation of Implied Probability of Default from Corporate Bond Spreads: An Empirical Study of Indian Market

Authors:   Tasneem Chherawala, tasneem@nibmindia.org
Arindam Bandyopadhyay

This paper describes probability of default (PD) analysis for Corporate Bonds, Debentures, Preference Shares of the Nature of Debt and Refinance Exposures to Banks. We have empirically shown that the historical data on credit spreads published by FBIL are the appropriate basis for extracting the market-implied default probabilities associated …

Read More

Paper Number:  WP25/2023
Publication Year:  May 2023

End of the LIBOR Era and the Road Ahead for Financial Markets

Authors:   Tasneem Chherawala, tasneem@nibmindia.org

This article provides an overview of the impending cessation of the London Interbank Offer Rate (LIBOR) and its implications for Indian markets. As a key reference interest rate, the LIBOR dominated global financial markets for over three decades but its credibility came under scrutiny post the financial crisis of …

Read More

Paper Number:  WP24/2023
Publication Year:  May 2023

Operational Efficiency in the Presence of Undesirable Byproducts: An Analysis of Indian Banking Sector under Traditional and Market-Based Banking Framework

Authors:   Gargi Sanati, gargi@nibmindia.org
Anup Kumar Bharndari

In the backdrop of an increase in market-based banking activities, we study the operational efficiency of the Indian banking sector during 2009-10 through 2017-18 considering Market Return as desirable outputs, in addition to Advances and Slippage as undesirable byproducts simultaneously. Using data envelopment analysis (DEA) method, we estimate six …

Read More

Paper Number:  WP23/2022
Publication Year:  November 2022

Improving Asset Quality Data through Divergence Disclosures

Authors:   Dipali Krishnakumar, k.dipali@nibmindia.org

The Reserve Bank of India has tightened the norms for disclosure of divergence on asset classification and provisioning by commercial banks and also made disclosure norms applicable to Primary (Urban) Co-operative Banks (UCBs). This article describes the concept of divergence, discusses typical reasons for divergence, provides an analysis on …

Read More