The purpose of this paper is to investigate the relationship between capital adequacy (CA) and the performance of select public and private sector banks and thereby to attain an insight into whether the capital adequacy maintenance affects bank performance differently or not, based on their nature of concern. Design/methodology/approach The study utilized a balanced panel data set using bank-level data of 37 banks indexed at Bombay Stock Exchange (BSE) across the public and private sectors for the period of 10 years (2009-–2018). The study takes 370 observations into consideration (i.e., 37 banks over a time frame of 10 years). The study is based on secondary financial data obtained from the capital line database. The balanced panel regression model for capturing the performance of banks in relation to capital adequacy has been adopted for the study.
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