Financing of Corporate Banks

The Impact of Investment Patterns on Indian Corporate Banks

Abstract

The pattern and pace of long-term investment is crucial in the development of every economy. The rate of capital accumulation or business fixed investment is one of the key determinants of economy’s long term growth rate and is indispensable for overall economic development.The role of Indian corporate banks has always been instrumental in this regard. Moreover, the same has become even more significant after the liberalization, privatization and globalization measures post Industrial Policy 1991 in Indian economy. Investment as such contributes towards current demand, current employment and future output. It therefore becomes interesting to study investment at aggregate, industry and firm level. The investment pattern can also indicate impact of monetary and fiscal policy on the corporate banks.