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Bank Profitability with a Hybrid Profit Function - The Indian Case

Amita Batra
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Amita Batra: Hindu College, University of Delhi

Indian Economic Review, 1996, vol. 31, issue 2, 223-234

Abstract: This paper examines the impact of policy constraints on the profitability of Indian scheduled commercial banks for the period 1955-87. The profit function approach has been used in the analysis. Previous bank profitability studies are in several ways limited and confined their scope of enquiry to questions of either 'operational' or 'technical' efficiency. The present study provides a comparative view on pre and post nationalisation periods of Indian banking. It indicates the importance of loans and advances in the bank asset portfolio as also of policy variables like SLR CRR and branch expansion in explaining bank profitability.

JEL-codes: G21 L21 (search for similar items in EconPapers)
Date: 1996
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