• Ada Haqqee
• Dr. Pulkit Agarwal

The aim of this paper is to determine the factors influencing net interest margin in Indian banking sector. Under its scope, the impact of 4 explanatory variables on net interest margin was analyzed. These explanatory variables consist of both bank-specific and macroeconomic variables. Data for the period between 2012 and 2021 was used in this study. After that, we created a model by using multivariate regression method so as to illustrate the relationship. The major finding in this study is that net interest margin is positively related with operating expenses, credit risk, and inflation. On the other hand, net interest margin is negatively related to economic growth. According to these results, it was determined that banks should try to maintain lower interest margins. This can be done by improving operational efficiency, implementation of standards in management of credit risk and maintenance of favorable economic situations which include lower inflation rate and sustainable economic growth.

Banking, Net Interest Margin, Commercial Banks, India

"Factors Influencing Net Interest Margin In Dominant Indian Banks", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 4, page no.g223-g231, April-2022, Available :http://www.jetir.org/papers/JETIR2204634.pdf

"Factors Influencing Net Interest Margin In Dominant Indian Banks", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 4, page no. ppg223-g231, April-2022, Available at : http://www.jetir.org/papers/JETIR2204634.pdf