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Indian bank efficiency and productivity changes with undesirable outputs: A disaggregated approach

Fujii, Hidemichi, Managi, Shunsuke, Matousek, Roman (2014) Indian bank efficiency and productivity changes with undesirable outputs: A disaggregated approach. Journal of Banking and Finance, 38 (1). pp. 41-50. ISSN 0378-4266. (doi:10.1016/j.jbankfin.2013.09.022) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1016/j.jbankfin.2013.09.022

Abstract

The objective of this study is to examine technical efficiency and productivity growth in the Indian banking sector over the period from 2004 to 2011. We apply an innovative methodological approach introduced by Chen et al. (2011) and Barros et al. (2012), who use a weighted Russell directional distance model to measure technical inefficiency. We further modify and extend that model to measure TFP change with NPLs. We find that the inefficiency levels are significantly different among the three ownership structure of banks in India. Foreign banks have strong market position in India and they pull the production frontier in a more efficient direction. SPBs and domestic private banks show considerably higher inefficiency. We conclude that the restructuring policy applied in the late 1990s and early 2000s by the Indian government has not had a long-lasting effect. © 2013.

Item Type: Article
DOI/Identification number: 10.1016/j.jbankfin.2013.09.022
Additional information: Unmapped bibliographic data: AD - Graduate School of Environmental Studies, Tohoku University, 6-6-20 Aramaki-Aza-Aoba, Aoba-ku, Sendai 980-8579, Japan [Field not mapped to EPrints] AD - School of Business, Management and Economics, The University of Sussex, Brighton BN1 9RH, United Kingdom [Field not mapped to EPrints] JA - J. Bank. Financ. [Field not mapped to EPrints]
Uncontrolled keywords: Bank, DEA, Efficiency, India, Non-performing loan
Subjects: H Social Sciences > HG Finance
Divisions: Faculties > Social Sciences > Kent Business School > Accounting and Finance
Depositing User: Tracey Pemble
Date Deposited: 08 Apr 2014 14:20 UTC
Last Modified: 29 May 2019 12:04 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/39081 (The current URI for this page, for reference purposes)
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