The paper studies the default probabilities of the 47 Indian firms over period of 2007 to 2013. This study uses options based method to predict the probability of default of these firms over the assessment period. We has used Black, Scholes and Merton model in this paper. The study estimates the...

The paper studies the default probabilities of the 47 Indian firms over period of 2007 to 2013. This study uses options based method to predict the probability of default of these firms over the assessment period. We has used Black, Scholes and Merton model in this paper. The study estimates the...

Banking system uses this practice of divergence in reporting bad loans and their provisioning with the hope that those bad loan accounts would turn into standard assets over time. However with the help of this practice, the real financial positions of these institutions are withheld for some...