Refine your search
Collections
Co-Authors
Journals
Year
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All
Burman, Nitashree
- Cost Efficiency of Public Sector Banks in India: an Empirical Study
Abstract Views :421 |
PDF Views:214
Authors
Affiliations
1 Department of Commerce,Assam University (A Central University), Silchar, IN
2 Department of Commerce, Assam University (A Central University), Silchar, IN
1 Department of Commerce,Assam University (A Central University), Silchar, IN
2 Department of Commerce, Assam University (A Central University), Silchar, IN
Source
Indira Management Review, Vol 10, No 1 (2016), Pagination: 4-15Abstract
The present paper aims to estimate cost efficiency of twenty five public sector banks in India for the period 2002-03 to 2011-12 with the help of Data Envelopment Analysis (DEA) model.The study reveals that the banks, on an average, could have saved 7.2 per cent of actual cost incurred. Corporation Bank has been found to be the most cost efficient bank,whereas United Bank of India has proved to be most inconsistently cost inefficient bank during the study period. Further, the study has also investigated the influence of select factors on cost efficiency. The study concludes that higher capitalisation, poor asset quality and higher volume of liquid assets adversely affect cost efficiency of the banks. On the other hand, business per employee, off-balance sheet exposure, profitability, size and market competition positively affect cost efficiency of the banks. However, the influence of size and market competition is not statistically significant.Keywords
DEA, Capital Adequacy, Asset Quality, Liquidity, Off-Balance Sheet Exposure.Full Text
References
- Das, A. (1999): "Efficiency of Public Sector Banks: An Application of Data Envelopment Analysis Model", Prajnan, Vol. XXVIII, No. 2, pp. 119-130.
- Gardener, E., Molyneux, P. and Linh, H. N. (2011): "Determinants of efficiency in South East Asian banking", The Service Industries Journal, Vol. 31, No. 16, pp. 2693-2791.
- Gulati, R. (2011): "Efficiency in Indian Commercial Banks: A Post-deregulation Experience", Ph.D.Thesis, Department of Economics, Punjab School of Economics, Faculty of Economics and Business, Guru Nanak Dev University, Amritsar, pp. 1-455.
- Karimzadeh, M. (2012): "Efficiency Analysis by using Data Envelopment Analysis Model: Evidence from Indian Banks", International Journal of Latest Trends in Finance & Economic Sciences, Vol. 2 No.3, pp. 228-236.
- Kaur, P. and Kaur, G. (2010): "Impact of Mergers on the Cost Efficiency of Indian Commercial Banks", Eurasian Journal of Business and Economics, Vol. 3, No. 1, pp. 27-50.
- Krishna, G. R., &Rao;, K. V. G. (2008).Performance of public sector banks after reforms (1st Ed.). New Delhi: Serials Publications.
- Lin, P. (2005): "An Empirical Analysis of Bank Mergers and Cost Efficiency in Taiwan", Small Business Economics, Vol. 25, pp. 197-206. doi 10.1007/s11187-003-6451-y
- Mahesh, H.P (2006): "Liberalisation and Efficiency of Indian Commercial Banks: A Stochastic Frontier Analysis", Working Paper 177, Institute for Social and Economic Change, pp. 1-23
- Matousek, R. and Taci, A. (2004): "Efficiency in Banking: Empirical Evidence from the Czech Republic", Economics of Planning, Vol. 37, pp. 225-242. doi 10.1007/s10644-005-5059-4
- Mohan, R. (2006). Reforms, productivity and efficiency in banking: The Indian banking experience. Reserve Bank of Indian Bulletin. 279. Retrieved from http:// rbidocs. rbi.org.in /rdocs/Speeches/PDFs/ 69198.pdf
- Raina, D. and Sharma, S. K. (2013): "Determinants of Cost Efficiency of Commercial Banks in India: DEA Evidence", The IUP Journal of Bank Management, Vol. XII No. 2, pp. 17-27.
- Sensarma, R. (2005): "Cost and Profit Efficiency of Indian Banks during 1986-2003- A Stochastic Frontier Analysis", Economic and Political Weekly, pp. 1198-1207.
- Shah, A. & Thomas, S. (1999). Developing the Indian capital market. In J. A. Hanson,& S. Kathuria (Eds.), A financial sector for the twenty-first century (1st Ed., p. 205), New Delhi: Oxford University Press.
- Sharma, A.K., Sharma, D., &Barua;, M. K. (2012, June1-2). Efficiency and productivity of Indian banks: An application of Data Envelopment Analysis and Tobit regression. Paper presented at National Conference on Emerging Challenges for Sustainable Business, Department of Management Studies, IITRoorkee.
- Tapiawala, M. P. (2010). Banking reforms and productivity in India. New Delhi: New Century Publication.
- Weill, L. (2004): "Measuring Cost Efficiency in European Banking: A Comparison of Frontier Techniques", Journal of Productivity Analysis, Vol. 21, pp. 133-150.
- Yeh, Q. J. (1996):"The Application of Data Envelopment Analysis in Conjunction with Financial Ratios for Bank Performance Evaluation", The Journal of the Operational Research Society Vol. 47, No. 8, pp. 980- 988.