Table A1 System GMM Estimates with...

Table A1

System GMM Estimates with Aggregate Bank Credit Growth

Variable	Coefficient	Std. Error	z-Statistic	p-value
Lagged Net NPAs (Persistence)	0.708	0.084	8.43	0.000***
Year (Trend)	4,180	1,190	3.51	0.001***
Aggregate Credit Growth (%)	−615	298	−2.06	0.039**
Inflation (CPI)	128	219	0.58	0.561
Repo Rate	351	173	2.03	0.042**
Constant	−8,320,000	2,310,000	−3.60	0.000***

Variable	Coefficient	Std. Error	z-Statistic	p-value
Lagged Net NPAs (Persistence)	0.708	0.084	8.43	0.000***
Year (Trend)	4,180	1,190	3.51	0.001***
Aggregate Credit Growth (%)	−615	298	−2.06	0.039**
Inflation (CPI)	128	219	0.58	0.561
Repo Rate	351	173	2.03	0.042**
Constant	−8,320,000	2,310,000	−3.60	0.000***

Note(s): This table reports two-step System GMM estimates for Net Non-Performing Assets (NPAs) over 2004–2024 using aggregate bank credit growth as an alternative macro-financial proxy in place of GDP growth. Aggregate credit growth is measured as the annual percentage change in outstanding bank credit, sourced from Reserve Bank of India publications. Robust standard errors are reported. Significance levels: *** p < 0.01, ** p < 0.05, * p < 0.10.

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