Efficiency, Size & Ownership of Domestic Commercial Banks In India: an Empirical Study

Published in Journal

Journal of Advances and Scholarly Researches in Allied Education [JASRAE] (Vol:3/ Issue: 6) DOI: 10.29070/JASRAE
Authors: Anupama Rajput, Bhawna Rajput*,
Subjects: Multidisciplinary Academic Research

Year: Apr, 2012
Volume: 3 / Issue: 6
Pages: 0 - 0 (0)
Publisher: Ignited Minds Journals
Source:
E-ISSN: 2230-7540
DOI:
Published URL: http://ipublisher.in/p/252743
Published On: Apr, 2012

Article Details

Efficiency, Size & Ownership of Domestic Commercial Banks in India: An Empirical Study | Original Article

Anupama Rajput, Bhawna Rajput*, in Journal of Advances and Scholarly Researches in Allied Education | Multidisciplinary Academic Research

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ABSTRACT:

This paper attempts to estimate profit and cost efficiency levels using frontier analysis based on panel data of 52 domestic banks in India during 2000-2006. The findings show on an average bank is 88 cost efficient and 67 profit efficient in India. Efficiency ratios are comparable with international studies on efficiency of financial institutions. As against the popular belief, no significant difference in mean efficiency of public sector banks and private sector banks is found. Bank size is found to be associated with higher cost efficiency but not profit efficiency. Banks, which are inefficient in risk management, are found to be under performing. Efficiency gains of competition are clearly evident in the study.