<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The paper investigates and compares the performance of the Indian public sector banks (PSBs) based on revenue maximising efficiency in the deregulation period from 2001-02 to 2012-13. Several efficiency estimates viz., overall technical efficiency, pure technical efficiency and scale efficiency of individual banks are calculated using Data Envelopment Analysis (DEA). The empirical findings indicate the presence of managerial and scale inefficiencies in the operation of the most of the PSBs. Applying the Tobit regression analysis, the paper also assesses the impact of different environmental factors, like profitability, the level of non-performing assets, size etc. on the efficiency of PSBs. It is observed that banks with high profitability, low level of non-performing assets, and relatively larger size are more technically efficient.</p></abstract>

The paper investigates and compares the performance of the Indian public sector banks (PSBs) based on revenue maximising efficiency in the deregulation period from 2001-02 to 2012-13. Several efficiency estimates viz., overall technical efficiency, pure technical efficiency and scale efficiency of individual banks are calculated using Data Envelopment Analysis (DEA). The empirical findings indicate the presence of managerial and scale inefficiencies in the operation of the most of the PSBs. Applying the Tobit regression analysis, the paper also assesses the impact of different environmental factors, like profitability, the level of non-performing assets, size etc. on the efficiency of PSBs. It is observed that banks with high profitability, low level of non-performing assets, and relatively larger size are more technically efficient.

An Analysis of Revenue Maximising Efficiency of Public Sector Banks in the Post-Reforms Period

Department of Economics, Kurukshetra University, Kurukshetra, Haryana,

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The paper investigates and compares the performance of the Indian public sector banks (PSBs) based on revenue maximising efficiency in the deregulation period...

An Analysis of Revenue Maximising Efficiency of Public Sector Banks in the Post-Reforms Period

Online veröffentlicht: 08. Feb. 2017

Seitenbereich: 111 - 125

Eingereicht: 24. Jan. 2016

Akzeptiert: 24. Aug. 2016

DOI: https://doi.org/10.1515/jcbtp-2017-0006

Schlüsselwörter
Public sector banks, Efficiency, DEA, Tobit model

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

An Analysis of Revenue Maximising Efficiency of Public Sector Banks in the Post-Reforms Period

Online veröffentlicht: 08. Feb. 2017

Seitenbereich: 111 - 125

Eingereicht: 24. Jan. 2016

Akzeptiert: 24. Aug. 2016

DOI: https://doi.org/10.1515/jcbtp-2017-0006

SchlüsselwörterPublic sector banks, Efficiency, DEA, Tobit model

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Schlüsselwörter
Public sector banks, Efficiency, DEA, Tobit model