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Competition in Indian Banking

Author

Listed:
  • A. Prasad

    (A. Prasad is Advisor to Executive Director for India, International Monetary Fund. Email: A.Prasad@imf.org)

  • Saibal Ghosh

    (Saibal Ghosh is Assistant Adviser, Department of Economic Analysis, Reserve Bank of India, Mumbai. Email: saibalghosh@rbi.org.in)

Abstract

It is widely perceived that competition in the Indian banking sector has increased since the inception of the financial sector reforms in 1992. Using annual data on scheduled commercial banks for the period 1996–2004, the article evaluates the validity of this proposition in the Indian context. The empirical evidence reveals that Indian banks earn revenues as if under monopolistic competition.

Suggested Citation

  • A. Prasad & Saibal Ghosh, 2007. "Competition in Indian Banking," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 8(2), pages 265-284, December.
    • Handle: RePEc:sae:soueco:v:8:y:2007:i:2:p:265-284
    DOI: 10.1177/139156140700800205
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    References listed on IDEAS

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    6. De Bandt, Olivier & Davis, E. Philip, 2000. "Competition, contestability and market structure in European banking sectors on the eve of EMU," Journal of Banking & Finance, Elsevier, vol. 24(6), pages 1045-1066, June.
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    8. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
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    Cited by:

    1. Mostak Ahamed, M., 2017. "Asset quality, non-interest income, and bank profitability: Evidence from Indian banks," Economic Modelling, Elsevier, vol. 63(C), pages 1-14.

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    More about this item

    Keywords

    JEL: G21; JEL: F36; Competition; Banking; Panzar-Rosse Statistic; India;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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