Share Repurchase: Consequences in Indian Banking Sector
Keywords:
banking sector, financial position, stabilityAbstract
This present study has examined how the share repurchase influences the Indian banking sector. Share repurchase is the important step taken by the company to strengthen its financial position and future financial stability of the company. Share repurchases drop off the outstanding shares of the company and its force is resulted in Earning per Share (EPS). Thus, this would eventually result in a higher share price. Indian banking sector focuses on managing the risk. Buyback of shares helps to pay the creditors for the losses occurred in the past. Banking sector plays important role in developing the country and in order to accelerate the Indian economy the financial stability of this sector are highly important. This sector attracts more investors because the risk element is comparatively lower than the other sectors and provides higher value during the time of buyback.
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