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Abstract
This study is a maiden attempt to determine the bank-specific and macroeconomic variables influencing the liquidity of public and private sector commercial banks in India. For the purpose of this study, 20 public sector banks and 19 private sector banks have been considered for the period from 2005 to 2019. Credit to Deposit Ratio and Current Assets to Total Assets are proxied as measures of explained variable. Capital Adequacy Ratio, Deposits to Total Assets, Return on Assets, Return on Equity, Net Interest Margin, Operating Profits to Total Assets, Non-Performing Assets to Total Assets are proxied as bank-specific determinants. Gross Domestic Product, Consumer Price Index and Real Interest Rate are proxied as macroeconomic variables.