1. Productivity and Profitability Performance: A Comparative Study of Commercial Banks in India.
- Author
-
Shaban, Majid and Lazar, D.
- Subjects
BANKING industry ,PROFITABILITY ,PRODUCTION (Economic theory) ,BANK profits ,INDIAN economy ,DATA envelopment analysis - Abstract
The onset of economic and financial reforms in India has changed the functioning of the banking system in India. The reforms have led to increased competition with the entry of private sector banks and foreign banks. This scenario has forced the existing banks and the new entrants to examine the efficiency of their operations. In this backdrop, the aim of the study is to measure the efficiency of commercial banks in India through productivity and profitability performance indicators by using a non-parametric Data Envelopment Analysis (DEA) technique. The study is conducted for the period of 10 years i.e. from 1999 to 2009 on a sample of 70 commercial banks (26 public banks, 19 private banks and 25 foreign banks). The results indicate that the public sector banks are having high efficiency in case of profitability, followed by private and foreign sector banks whereas in productivity foreign banks performed exceptionally well and placed after public sector banks. [ABSTRACT FROM AUTHOR]
- Published
- 2014