Table 6 Panel GMM regression results...

Table 6

Panel GMM regression results (2004–2024): impact of macroeconomic controls on net NPAs

Variable	Coefficient	Std. error	z-statistic	p-value
Lagged net NPAs (Persistence)	0.714	0.081	8.81	0.000***
Year (Trend)	4,210	1,150	3.66	0.001***
GDP growth	−920	465	−1.98	0.047**
Inflation (CPI)	135	212	0.64	0.524
Repo rate	342	168	2.04	0.042**
Constant	−8,400,000	2,250,000	−3.73	0.000***

Variable	Coefficient	Std. error	z-statistic	p-value
Lagged net NPAs (Persistence)	0.714	0.081	8.81	0.000***
Year (Trend)	4,210	1,150	3.66	0.001***
GDP growth	−920	465	−1.98	0.047**
Inflation (CPI)	135	212	0.64	0.524
Repo rate	342	168	2.04	0.042**
Constant	−8,400,000	2,250,000	−3.73	0.000***

Note(s): The table reports two-step system GMM estimates for Net Non-Performing Assets (NPAs) over the period 2004–2024. The dependent variable is Net NPAs. The model exhibits strong explanatory power (R² = 0.816; adjusted R² = 0.798). Diagnostic tests support model validity: the Hansen J-test does not reject the null of instrument validity (p = 0.615), the AR(1) test is significant as expected (p = 0.029), and the AR(2) test is not significant (p = 0.358), indicating the absence of second-order serial correlation. Robust standard errors are used. Significance levels are denoted as * p < 0.10, **p < 0.05, ***p < 0.01

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