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Did efficiency of Indian public sector banks converge with banking reforms?


  • Sunil Kumar


  • Rachita Gulati



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Suggested Citation

  • Sunil Kumar & Rachita Gulati, 2009. "Did efficiency of Indian public sector banks converge with banking reforms?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 56(1), pages 47-84, March.
  • Handle: RePEc:spr:inrvec:v:56:y:2009:i:1:p:47-84
    DOI: 10.1007/s12232-008-0057-2

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    References listed on IDEAS

    1. Grabowski, Richard & Rangan, Nanda & Rezvanian, Rasoul, 1994. "The effect of deregulation on the efficiency of U.S. banking firms," Journal of Economics and Business, Elsevier, vol. 46(1), pages 39-54, February.
    2. Kumbhakar, Subal C, et al, 2001. "The Effects of Deregulation on the Performance of Financial Institutions: The Case of Spanish Savings Banks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(1), pages 101-120, February.
    3. Mamatzakis, Emmanuel & Staikouras, Christos & Koutsomanoli-Filippaki, Anastasia, 2008. "Bank efficiency in the new European Union member states: Is there convergence?," International Review of Financial Analysis, Elsevier, vol. 17(5), pages 1156-1172, December.
    4. Weill, Laurent, 2009. "Convergence in banking efficiency across European countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 19(5), pages 818-833, December.
    5. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-1036, July.
    6. Hao, Jonathan & Hunter, William Curt & Yang, Won Keun, 2001. "Deregulation and efficiency: the case of private Korean banks," Journal of Economics and Business, Elsevier, vol. 53(2-3), pages 237-254.
    7. João Rebelo & Victor Mendes, 2000. "Malmquist indices of productivity change in Portuguese banking: The deregulation period," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(3), pages 531-543, August.
    8. Franz Hahn, 2007. "Environmental determinants of banking efficiency in Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(3), pages 231-245, July.
    9. Bhattacharyya, Anjana & Bhattacharyya, Arunava & Kumbhakar, Subal C., 1997. "Changes in Economic Regime and Productivity Growth: A Study of Indian Public Sector Banks," Journal of Comparative Economics, Elsevier, vol. 25(2), pages 196-219, October.
    10. Drake, Leigh & Hall, Maximilian J. B., 2003. "Efficiency in Japanese banking: An empirical analysis," Journal of Banking & Finance, Elsevier, vol. 27(5), pages 891-917, May.
    11. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    12. Jaffry, Shabbar & Ghulam, Yaseen & Pascoe, Sean & Cox, Joe, 2007. "Regulatory changes and productivity of the banking sector in the Indian sub-continent," Journal of Asian Economics, Elsevier, vol. 18(3), pages 415-438, June.
    13. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    14. K. R. Shanmugam & A. Das, 2004. "Efficiency of Indian commercial banks during the reform period," Applied Financial Economics, Taylor & Francis Journals, vol. 14(9), pages 681-686.
    15. repec:kap:iaecre:v:6:y:2000:i:3:p:531-543 is not listed on IDEAS
    16. Mukherjee, Kankana & Ray, Subhash C. & Miller, Stephen M., 2001. "Productivity growth in large US commercial banks: The initial post-deregulation experience," Journal of Banking & Finance, Elsevier, vol. 25(5), pages 913-939, May.
    17. Tulkens, Henry & Vanden Eeckaut, Philippe, 1995. "Non-parametric efficiency, progress and regress measures for panel data: Methodological aspects," European Journal of Operational Research, Elsevier, vol. 80(3), pages 474-499, February.
    18. Subal kumbhakar & Ana Lozano-Vivas, 2005. "Deregulation and Productivity: The Case of Spanish Banks," Journal of Regulatory Economics, Springer, vol. 27(3), pages 331-351, January.
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    20. Denizer, Cevdet A. & Dinc, Mustafa & Tarimcilar, Murat, 2000. "Measuring banking efficiency in the pre- and post-liberalization environment : evidence from the Turkish banking system," Policy Research Working Paper Series 2476, The World Bank.
    21. Isik, Ihsan & Hassan, M. Kabir, 2002. "Technical, scale and allocative efficiencies of Turkish banking industry," Journal of Banking & Finance, Elsevier, vol. 26(4), pages 719-766, April.
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    23. Kumbhakar, Subal C & Sarkar, Subrata, 2003. " Deregulation, Ownership, and Productivity Growth in the Banking Industry: Evidence from India," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 35(3), pages 403-424, June.
    24. Bhattacharyya, Arunava & Lovell, C. A. K. & Sahay, Pankaj, 1997. "The impact of liberalization on the productive efficiency of Indian commercial banks," European Journal of Operational Research, Elsevier, vol. 98(2), pages 332-345, April.
    25. Leightner, Jonathan E. & Lovell, C. A. Knox, 1998. "The Impact of Financial Liberalization on the Performance of Thai Banks," Journal of Economics and Business, Elsevier, vol. 50(2), pages 115-131, March.
    26. Koski, Heli A. & Majumdar, Sumit K., 2000. "Convergence in telecommunications infrastructure development in OECD countries," Information Economics and Policy, Elsevier, vol. 12(2), pages 111-131, June.
    27. Sensarma, Rudra, 2006. "Are foreign banks always the best? Comparison of state-owned, private and foreign banks in India," Economic Modelling, Elsevier, vol. 23(4), pages 717-735, July.
    28. Ghosh, Madhusudan, 2006. "Regional Convergence in Indian Agriculture," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(4).
    29. Cevdet Denizer & Mustafa Dinc & Murat Tarimcilar, 2007. "Financial liberalization and banking efficiency: evidence from Turkey," Journal of Productivity Analysis, Springer, vol. 27(3), pages 177-195, June.
    30. T. G. Arun & J. D. Turner, 2002. "Financial Sector Reforms in Developing Countries: The Indian Experience," The World Economy, Wiley Blackwell, vol. 25(3), pages 429-445, March.
    31. Alexander Kondeas & Steven Caudill & Daniel Gropper & Jennie Raymond, 2008. "Deregulation and productivity changes in banking: evidence from European unification," Applied Financial Economics Letters, Taylor and Francis Journals, vol. 4(3), pages 193-197.
    32. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
    33. Sowlati, Taraneh & Paradi, Joseph C., 2004. "Establishing the "practical frontier" in data envelopment analysis," Omega, Elsevier, vol. 32(4), pages 261-272, August.
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    Cited by:

    1. Bhattacharyya, Aditi & Pal, Sudeshna, 2013. "Financial reforms and technical efficiency in Indian commercial banking: A generalized stochastic frontier analysis," Review of Financial Economics, Elsevier, vol. 22(3), pages 109-117.
    2. Gulati, Rachita & Kumar, Sunil, 2016. "Assessing the impact of the global financial crisis on the profit efficiency of Indian banks," Economic Modelling, Elsevier, vol. 58(C), pages 167-181.

    More about this item


    Data envelopment analysis; Public sector banks; Technical efficiency; σ-Convergence; β-Convergence; G21; G15;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets


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