Performance of Indian commercial banks (1995-2002): an application of data envelopment analysis and Malmquist productivity index

Don (Tissa) U. A. Galagedera and Piyadasa Edirisuriya
Additional contact information
Piyadasa Edirisuriya: Monash University

Finance from EconWPA

Abstract: This paper investigates efficiency using data envelopment analysis (DEA) and productivity growth using Malmquist index in a sample of Indian commercial banks over the period 1995-2002. Using total deposits and operating expenses as input and loans and other earning assets as output in the DEA analysis we observe no significant growth in productivity during the sampled period. The rate of increase in technical efficiency though small is likely to be due to scale efficiency compared to managerial efficiency. In general, smaller banks are less efficient and highly DEA-efficient banks have a high equity to assets and high return to average equity ratios. There has been no growth in productivity in private sector banks where as the public sector banks appears to demonstrate a modest positive change through 1995-2002. Technological change in the public sector banks reveals a growth while the private sector banks experienced a negative growth of almost the same magnitude.

Keywords: Indian banks; productivity change; DEA; Malmquist index (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa
Date: 2004-08-17
Note: Type of Document - pdf; pages: 31
View list of references

Downloads: (external link)
http://129.3.20.41/eps/fin/papers/0408/0408006.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpfi:0408006

Access Statistics for this paper

More papers in Finance from EconWPA
Series data maintained by EconWPA ().