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Measurement of Efficiency of Banks in India

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Author Info
Varadi, Vijay Kumar
Mavaluri, Pradeep Kumar
Boppana, Nagarjuna

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Abstract

In modern world, performance of banking is more important to stable the economy. In order to see the efficiency of Indian banks we have used four indicators i.e, profitability, productivity, asset quality and financial management for all banks include public, private and foreign banks in India for the period 1999-2000 to 2002-2003. For measuring the efficiency of banks we have adopted DEA (Data Envelopment Analysis) and found that public sector banks are more efficient than other banks operating in India.

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File URL: http://mpra.ub.uni-muenchen.de/17350/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17350.

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Date of creation: Aug 2006
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Handle: RePEc:pra:mprapa:17350

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Related research
Keywords: banking efficiency; productivity; profitability; asset quality and financial management;

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Find related papers by JEL classification:
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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  1. Allen N. Berger & David B. Humphrey, 1997. "Efficiency of Financial Institutions: International Survey and Directions for Future Research," Center for Financial Institutions Working Papers 97-05, Wharton School Center for Financial Institutions, University of Pennsylvania. [Downloadable!]
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  2. Sathye, Milind, 2001. "X-efficiency in Australian banking: An empirical investigation," Journal of Banking & Finance, Elsevier, vol. 25(3), pages 613-630, March. [Downloadable!] (restricted)
  3. Saha, Asish & Ravisankar, T. S., 2000. "Rating of Indian commercial banks: A DEA approach," European Journal of Operational Research, Elsevier, vol. 124(1), pages 187-203, July. [Downloadable!] (restricted)
  4. Sathye, Milind, 2003. "Efficiency of banks in a developing economy: The case of India," European Journal of Operational Research, Elsevier, vol. 148(3), pages 662-671, August. [Downloadable!] (restricted)
  5. Charnes, A. & Cooper, W. W. & Huang, Z. M. & Sun, D. B., 1990. "Polyhedral Cone-Ratio DEA Models with an illustrative application to large commercial banks," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 73-91. [Downloadable!] (restricted)
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