Multiple aspects of indian banking efficiency

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.

2019

ABSTRACT<br> Purpose – This paper aims to analyse the efficiency level of selected private sector banks in India.<br> Design/methodology/approach – Data envelopment analysis has been used to measure the efficiency of banks, in which<br> technical, allocative and cost/economic efficiency measures are analysed to know the efficiency of banks.<br> Findings - The empirical evidence suggests that ICICI and Kotak Mahindra banks are the most efficient banks in terms of all<br> three efficiency measures with the mean score of 100 percent. It implies that remaining banks are managerially inefficient<br> due to failure to use the available resources at optimum level.<br> Originality/values – The paper compares the efficiency of selected private sector banks by utilizing the available data set for<br> the period 2013-18.

SSRN Electronic Journal, 2000

Many firms in the service industry face the problem of disparate results in terms of efficiency. This problem is a cause of concern for many big organizations such as banks, hotels, courier companies, and so on. In particular, the last decade has witnessed continuous changes in regulation, technology and competition in the global financial services industry, and Indian banks are no exception. Rising cost-income ratios and declining profitability reflect increased competitive pressure. To assess the stability of the banking system, it is therefore crucial to benchmark the performance of banks operating in India. An efficient banking system contributes in an extensive way to higher economic growth in any country. Thus, studies of banking efficiency are very important for policy makers, industry leaders and many others who are reliant on the banking sector.

The structure of Indian banking has substantially changed over the past decades, partially as a result of adoption of new technologies and process of reforms and accompanying deregulation has embodied an incentive for bank management to focus on improving efficiency, especially given the more competitive banking environment. This study aims to examine the efficiency of Indian commercial banks during 2000 – 2010 by utilizing Data Envelopment Analysis (DEA). Based on the sample of 8 commercial banks, our findings reveal that the mean of cost (economic) efficiency, technical efficiency, and allocative efficiency are 0.991, 0.995, and 0.991 in VRS model and 0.936. 0.969, and 0.958 in CRR model, respectively using DEA approach. Inputs and outputs of this study were analyzed based on intermediation approach. In addition, the results suggest that Bank of India and ICICI bank are more efficient as compare to other banks in India and result confirmed that selected Public Sector Banks are more efficient than Private sectors during the study period in India.

The structure of Indian banking has substantially changed over the past decades, partially as a result of adoption of new technologies and process of reforms and accompanying deregulation has embodied an incentive for bank management to focus on improving efficiency, especially given the more competitive banking environment. This study aims to examine the efficiency of Indian commercial banks during 2000 -2010 by utilizing Data Envelopment Analysis (DEA). Based on the sample of 8 commercial banks, our findings reveal that the mean of cost (economic) efficiency, technical efficiency, and allocative efficiency are 0.991, 0.995, and 0.991 in VRS model and 0.936. 0.969, and 0.958 in CRR model, respectively using DEA approach. Inputs and outputs of this study were analyzed based on intermediation approach. In addition, the results suggest that Bank of India and ICICI bank are more efficient as compare to other banks in India and result confirmed that selected Public Sector Banks are more efficient than Private sectors during the study period in India.

2020

The Indian financial sector reforms of 1991 has greatly changed the face of Indian Banking system. In the face of this increased competition, efficiency of the banking system is one of the most imperative issue in order to sustain and perform better. Data Envelopment Analysis is one such tool developed by Charnes et. al (1978) and further extended by Banker et. al (1984) that uses the principles of linear programming theory to examine how a particular Decision-Making Unit (DMU) like a bank – operates relative to other DMUs in the sample. The focus of this paper is using Data Envelopment Analysis (DEA) approach to evaluate the efficiency of Indian Private Sector banks for the year 2019. In this study, 20 private sector banks each with 5 inputs namely deposits, employees, fixed assets, interest & non-interest expenses and 4 outputs namely advances, investments, non interest & net interest income, using intermediation approach are considered. For each bank, efficiency scores have been ...

In this paper, the efficiencies of State Bank of India group were calculated through an Operational Research Tool namely Data Envelopment Analysis (DEA). The efficiency calculation of banks was done with seven inputs and seven outputs. The efficiencies on constant returns scale and variable returns scales were calculated with the CCR and BCR models. The results are obtained through a software namely DEAP 2.1 version. Data sources are from CMIE for around seventy-seven banks. The performance analysis was carried out for the SBI group of banks along with other Indian and foreign banks. Various interesting findings were explored. The statistical analysis was carried out with SPSS to the results obtained through DEA. Performance evaluation was studied for a period of 6 years from 2007 to 2012. Introduction:

International Journal of Business and Economics Research, 2013

Banking companies in the service sector exhibit the problem of distinct results in terms of efficiency. This problem is a cause of concern for many big organizations in the service sector like hotels, courier companies, hospitals, banks and so on. In particular, the last decade has observed continuous amendment in regulation, technology and competition in the global financial services industry, and Indian banks are no exception. To measure the stability, sustainability and profitability of the banking system, it is therefore crucial to scale the operations of banks performing in India. A wellorganized banking system will provide an extensive way to higher economic growth in any country. Thus, evaluating the technical efficiency is important to depositors, owners, potential investors, managers and to policy makers. The present study investigates the technical efficiency of public sector banks in India by considering the study period between 2008-09 and 2010-11and using the data extracted from RBI website (www.rbi.org.in) and IBA website (www.iba.org.in). For this purpose, the data envelopment analysis (DEA) was used with two input variables (Interest expenses and operating expenses) and two output variables (interest income and other income). The efficiency scores were calculated for a sample of twentysix public sector banks operating in India. The result shows that Corporation Bank, State Bank of India and IDBI were consistently performed efficiently in all the years under study.

Indian Journal of Economics and Development, 2019

Objective: The study is to examine the efficiency of the selected banks in India. The Foreign Banks as a group is the most efficient ones among the different banking groups whereas the group of State Bank of India and its Associates is found to be in the moderately efficient category. Among the sample PSBs, State Bank of India and Punjab National Bank have been moderately efficient maximum number of times during the study period

Review of Professional Management- A Journal of New Delhi Institute of Management, 2006

Measuring Bank efficiency has always been an important concern for policy makers and researchers. An understanding of a bank's relative efficiency is important for analysts, practitioners and policymakers alike. The objective of this paper was to measure the operational efficiencies of Indian commercial banks. In this paper, we analyze bank efficiency in India using Data Envelopment Analysis (DEA). We found that foreign-owned banks are on an average most efficient, that the new generation banks are more efficient than the old ones The study recommend that the Indian nationalized and private sector banks are required to put more efforts to enhance their operational efficiencies.