Economics at your fingertips  

Evaluating the Double Bottom-Line of Social Banking in an Emerging Country: How Efficient are Public Banks in Supporting Priority and Non-priority Sectors in India?

Almudena Martínez-Campillo (), Mahinda Wijesiri () and Peter Wanke ()
Additional contact information
Almudena Martínez-Campillo: University of León
Mahinda Wijesiri: Université du Québec – TÉLUQ
Peter Wanke: Federal University of Rio de Janeiro

Journal of Business Ethics, 2020, vol. 162, issue 2, No 9, 399-420

Abstract: Abstract India is the emerging country with the world’s greatest social banking program, so Indian banks are required to finance the weaker sectors of society that are excluded from the traditional financial system (priority sectors), while also providing mainstream banking services to non-priority sectors. For social banks to promote the ethical–social management of their dual mission and to be successful in today’s business environment, they must be as efficient as possible in both dimensions of their banking activity. Whereas the efficiency of Indian banks in the financial dimension is well understood, to date there has been no research evaluating their double bottom-line of achieving social and financial goals. Our study applies an innovative Network Slack-Based DEA model to evaluate how efficient Indian public banks are when providing credit to priority and non-priority sectors. We also explore the main factors influencing bank efficiency. Results suggest that Indian public banks have performed relatively well in both activities, although social efficiency has been slightly greater than financial efficiency. Moreover, their commitment to priority sector lending has not come into conflict with the profit-seeking objectives of mainstream banking services. As regards determinants of social and financial efficiency, there are countervailing forces played by regional wealth, bank size, branch networks, and rural location. Our findings are therefore useful for stakeholders of Indian public banks as they indicate if these entities have adequately managed their double bottom-line, and hence if they are critical for poverty alleviation and development in India.

Keywords: Double bottom-line; Efficiency; Indian social banks; Priority and non-priority sectors; Ethical–social management; Network slack-based DEA model (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to full text is restricted to subscribers.

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10551/PS2

DOI: 10.1007/s10551-018-3974-3

Access Statistics for this article

Journal of Business Ethics is currently edited by Michelle Greenwood and R. Edward Freeman

More articles in Journal of Business Ethics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2021-01-14
Handle: RePEc:kap:jbuset:v:162:y:2020:i:2:d:10.1007_s10551-018-3974-3