 Financial deregulation and efficiency: An empirical analysis of Indian banks during the post reform periodAbhiman Das and Saibal Ghosh Review of Financial Economics, 2006, vol. 15, issue 3, 193-221 Abstract: The paper investigates the performance of Indian commercial banking sector during the post reform period 1992–2002. Several efficiency estimates of individual banks are evaluated using nonparametric Data Envelopment Analysis (DEA). Three different approaches viz., intermediation approach, value‐added approach and operating approach have been employed to differentiate how efficiency scores vary with changes in inputs and outputs. The analysis links the variation in calculated efficiencies to a set of variables, i.e., bank size, ownership, capital adequacy ratio, non‐performing loans and management quality. The findings suggest that medium‐sized public sector banks performed reasonably well and are more likely to operate at higher levels of technical efficiency. A close relationship is observed between efficiency and soundness as determined by bank's capital adequacy ratio. The empirical results also show that technically more efficient banks are those that have, on an average, less non‐performing loans. A multivariate analysis based on the Tobit model reinforces these findings. Date: 2006 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:revfec:v:15:y:2006:i:3:p:193-221 Access Statistics for this article More articles in Review of Financial Economics from John Wiley & Sons |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.