A Research Upon Advanced Technology Lead to Superior Financial Performance In Indian Commercial Banks |

ABSTRACT:

While the efficiency of financial markets is widely andextensively studied, little has been done to date to develop our under-standingof what drives the performance of the institutions that operate in thesemarkets. Unavoidably, however, the efficient operation of financialintermediaries - banks, insurance and pension fund firms, government agencies,and so on - is instrumental for the efficient functioning of the financialsystem. It has been a matter of debate whether Technologyprovides better financial results and improves productivity. The present paperattempts to study the inter-group comparison of financial performance of Indianbanks by classifying the banks on the basis of usage of Technology. Further,for the purpose of temporal comparison, the period for the study has beendivided into two parts, i. e. low technology induction period and hightechnology induction period. Findings of the paper show that the fully itoriented banks are financially better off than the partially it oriented banks.Moreover, the performance of almost all the banks under study has tremendouslyimproved in the high technology induction period. However, for the Indianbanking industry, the correlation between Technology induction and financialproductivity is negative though statistically insignificant and low.