Liberalisation and Efficiency of Indian Commercial Banks: A Stochastic Frontier Analysis
The reforms introduced after 1992 are expected to have an impact on the performance of commercial banks. Thus the present study attempts to examine the efficiency level of Indian banks for the period 1985-2004. We employ the technique of stochastic frontier analysis to estimate bank specific post, profit and advance efficiencies. Our results show that deregulation has significant impact on all three types of efficiency measures. Public sector banks rank first in two of the three efficiency measures showing that, as opposed to the general perception, these banks do not lag behind their private counter parts.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: Nagarabhavi, Bangalore - 560072|
Web page: http://www.isec.ac.in/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Levine, Ross, 1996.
"Financial development and economic growth : views and agenda,"
Policy Research Working Paper Series
1678, The World Bank.
- Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
- Robert G. King & Ross Levine, 1993.
"Finance and Growth: Schumpeter Might Be Right,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 108(3), pages 717-737.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Isik, Ihsan & Kabir Hassan, M., 2003. "Financial deregulation and total factor productivity change: An empirical study of Turkish commercial banks," Journal of Banking & Finance, Elsevier, vol. 27(8), pages 1455-1485, August.
- Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
- Keshari, Pradeep K & Paul, Thomas M, 1994. "Relative efficiency of foreign and domestic Banks," MPRA Paper 47072, University Library of Munich, Germany.
- Sturm, Jan-Egbert & Williams, Barry, 2004. "Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience," Journal of Banking & Finance, Elsevier, vol. 28(7), pages 1775-1799, July.
- 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.
- Prithwis Kumar De, 2004. "Technical Efficiency, Ownership, And Reforms: An Econometric Study of Indian Banking Industry," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 39(1), pages 261-294, January.
- Sealey, Calvin W, Jr & Lindley, James T, 1977. "Inputs, Outputs, and a Theory of Production and Cost at Depository Financial Institutions," Journal of Finance, American Finance Association, vol. 32(4), pages 1251-66, September.
- George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
When requesting a correction, please mention this item's handle: RePEc:sch:wpaper:177. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (B B Chand)
If references are entirely missing, you can add them using this form.