Volume : V, Issue : II, February - 2016

COMPARATIVE ANALYSIS OF DEBT-EQUITY RATIO : AXIS BANK VS. VARIOUS BANKS

Neha Goyal, Leena Bajaj

Abstract :

 This study examines the effect of capital structure on bank performance Banks voluntarily choose to maintain capital in excess of the minimum required in order to balance the risks of insolvency, With a strong editorial emphasis on multiple sourcing of key information to ensure accuracy, Capital Structure provides high quality value-added news on and analysis to a client base of fund managers, credit analysts, auditors investors, restructuring advisors, entrepreneur, lawyers and accountants, private equity sponsors. Among financial analysts and investment research services, there is no universal agreement as to what constitutes a debt liability. For many analysts, the debt component in a bank‘s capitalization is simply a balance sheet‘s long-term debt. It‘s the capitalization ratio that delivers the key insights to evaluating a company‘s capital position. The capital structure referred to mixture of debt and equity financing. Whether or not an optimal capital structure is one of the most important and complex issues in the corporate finance. In general, research predicts that banks choose their capital structures by balancing the benefits of debt as per tax regulation and agency benefits against bank’s costs. As we all know, there is not an optimal capital structure of any financial body, this study focus on debt equity ratio of various banks so that to know their capital structure pattern

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Article: Download PDF    DOI : https://www.doi.org/10.36106/gjra  

Cite This Article:

NEHA GOYAL, LEENA BAJAJ Comparative Analysis of Debt-Equity Ratio : Axis Bank Vs. Various Banks Global Journal For Research Analysis, Vol: 5, Issue: 2 February 2016

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