Research Article Analyzing Performance of Banks in India: A Robust Regression Analysis Approach Mohammad Athar Ali , 1 Asif Pervez , 2 Rohit Bansal , 3 and Mohammed Arshad Khan 4 1 Department of Finance, College of Administration and Financial Science, Saudi Electronic University, Riyadh 11673, Saudi Arabia 2 Centre for Distance and Online Education, Jamia Millia Islamia, New Delhi, India 3 Department of Management Studies, Vaish College of Engineering, Rohtak, Haryana, India 4 Department of Accountancy, College of Administration and Financial Science, Saudi Electronic University, Riyadh 11673, Saudi Arabia Correspondence should be addressed to Mohammad Athar Ali; m.athar@seu.edu.sa Received 24 January 2022; Revised 23 February 2022; Accepted 25 February 2022; Published 24 March 2022 Academic Editor: Stefan Cristian Gherghina Copyright © 2022 Mohammad Athar Ali et al. is is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. is research aims to analyze the impact of bank performance determinants on bank performance by applying robust regression analysis. For this, the relationship between return on assets and net interest margin with bank performance determinants has been discussed using robust regression. Robust regression oﬀers a better and more realistic analysis owing to reducing the impact of outliers and inﬂuential data, and it is recommended for more precise results. 1. Introduction Modern banking borrowing and lending activities help in the economic development of the country. Accepting de- posits and lending activities expose the banks to various ﬁnancial risks that are “credit risk, liquidity risk, market risk, and operational risk.” e eﬃcient management of these risks is an important factor behind bank proﬁtability. e capital requirement of banks also depends on the man- agement of these risks by the banks. As banks are highly leveraged ﬁnancial institutions, the depositors’ money must be kept safe by the bank in any adverse situation, and therefore, risk management becomes paramount for banking institutions. Any adverse situation faced by the banks can aﬀect other sectors of the economy as well. erefore, regulators greatly emphasize the eﬀectiveness and stability of risk management in the banking system of an economy. Recent technological developments have also made the banking system even riskier. erefore, there is a need for the adoption of the best risk management practices by banks that oﬀer diﬀerent products and services to dif- ferent customers across the globe. Commercial banks are signiﬁcant for the Indian economy and are considered the heart of the ﬁnancial system. e RBI is the main regulator of commercial banks in India. Commercial banks are classiﬁed as “public sector, private, and foreign banks.” Recognizing the sig- niﬁcance of commercial banks in economic development, 14 banks were nationalized in 1969, followed by another 6 in 1980. Later reforms in the highly regulated banking sector began in 1991 in India as a part of the overall structured reforms. Financial deregulation and innovation in banking products and services have increased the importance of credit risk management. e Indian banking system has entered into a transition phase, and ﬁnancial stability has become a need of the hour due to rising nonperforming assets. Credit risk management practices in banks aﬀect the bank’s performance. e objective of the study is thus to assess the impact of bank performance determinants on bank performance. e present study aims to understand the role of bank-speciﬁc regulatory norms (Basel norms), macroeconomic factors, and ﬁnancial crises on the public-sector banks’ performance operating in India using robust regression techniques. Hindawi Discrete Dynamics in Nature and Society Volume 2022, Article ID 8103510, 9 pages https://doi.org/10.1155/2022/8103510