DOES INTERNAL LIQUIDITY MANAGEMENT TRIGGER THE GROWTH PERFORMANCE OF COMMERCIAL BANKS IN INDIA? AN ECONOMETRIC ANALYSIS

Purpose: The study aims at assessing the effects of bank-specific liquidity determinants on growth performance of sample Indian Commercial banks. Design/methodology: Sample for study comprises 20 Indian public sector banks and 22 Indian private sector banks over time span of 14 years i.e., 2005 to 2018 with 550 sample units. Panel Regression analysis, Descriptive Statistics, Multicollinearity test, Normality test and Heteroskedasticity test have been used for the study of objectives. Findings: The study reveals the existence of correlation between the bank-specific liquidity determinants and growth performance of sample banks. The results also infer presence of a significant influence of bank-specific liquidity determinants except LDR and IDR on growth (Deposits) of sample banks and significant contribution of bankspecific liquidity determinants except DSBDTD on growth (Total Assets) of sample banks. Originality: The article would add to existing study by highlighting the importance of bank-specific liquidity determinants on growth performance of Indian Commercial banks. The commercial banks under study may use the bank-specific liquidity determinants affecting the growth performance of commercial in India as their strategy to counter liquidity crisis.