IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789819823161_0010.html

Efficiency of Indian Private Commercial Banks: Evaluation and Explanation

In: Handbook of Financial Services Performance Analytical and Empirical Perspectives

Author

Listed:
  • Ram Pratap Sinha
  • K. Shanmugan

Abstract

The present study evaluates efficiency by adopting the directional distance function approach and seeks to explain the efficiency estimates for the 18 private sector commercial firms that continuously operated for the period 2014–2015 to 2023–2024. The result of the first stage is that while mean efficiency remained fairly stable during the decade under observation, new private sector banks have mostly performed better than the old private sector banks for the period under observation. The second stage analysis uses both static and dynamic models, and the outcomes indicate that efficiency is positively related to credit–deposit ratio and measures of profitability (return on asset and profit per employee) but negatively linked to capital-to-risk-weighted asset ratio and bank size. In the dynamic model, the coefficients of one-period lagged efficiency estimates are also highly significant.

Suggested Citation

  • Ram Pratap Sinha & K. Shanmugan, 2026. "Efficiency of Indian Private Commercial Banks: Evaluation and Explanation," World Scientific Book Chapters, in: Bhagirath Prakash Baria & Ram Pratap Sinha & Firdous Ahmad Malik & K Shanmugan (ed.), Handbook of Financial Services Performance Analytical and Empirical Perspectives, chapter 10, pages 203-219, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789819823161_0010
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789819823161_0010
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789819823161_0010
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:wschap:9789819823161_0010. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.