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Efficiency and Productivity Growth in Indian Banking

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  • S S Rajan
  • K L N Reddy
  • V N Pandit

Abstract

This paper attempts to examine technical efficiency and productivity performance of Indian scheduled commercial banks, for the period 1979-2008. A model is constructed using multiple output/multiple input technology production frontier using semiparametric estimation methods. The endogenity of multiple outputs is addressed by semi parametric estimates in part by introducing multivariate kernel estimators for the joint distribution of the multiple outputs and correlated random effects. Output is measured as the rupee value of total loans and total investments at the end of the year. The estimates provide robust inferences of the productivity and efficiency gains due to economic reforms. [Working Paper No.199]. URL:[http://www.cdedse.org/]

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  • S S Rajan & K L N Reddy & V N Pandit, 2011. "Efficiency and Productivity Growth in Indian Banking," Working Papers id:4359, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:4359
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    Cited by:

    1. Muneer Babu M. & Praveen Kulshreshtha, 2014. "Productivity Change and Technical Efficiency in Indian Microfinance Institutions," Studies in Microeconomics, , vol. 2(2), pages 165-200, December.
    2. Kishor Hakuduwal, Ph.D., 2018. "Technical Efficiency of Nepalese Banking Sector," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 30(2), pages 1-35, October.

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