Are Some Indian Bank Too Large? A Examination of Size Efficiency in Indian Banking

Subhash Ray

No 2004-28, Working papers from University of Connecticut, Department of Economics

Abstract: In this paper we use data from the years 1997 through 2003 to evaluate the size efficiency of Indian banks. Following Maindiratta (1990) we consider a bank to be too large if breaking it up into a number of smaller units would result in a larger output bundle than what could be produced from the same input by a single bank. When this is the case, the bank is not size efficient. Our analysis shows that many of the banks are, in deed, too large in various years. We also find that often a bank is operating in the region of diminishing returns to scale but is not a candidate for break up.

Pages: 31 pages
Date: 2004-09
Note: The author thanks Abhiman Das of Reserve Bank of India for providing the data.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://media.economics.uconn.edu/working/2004-28.pdf Full text (application/pdf)

Related works:
Journal Article: Are some Indian banks too large? An examination of size efficiency in Indian banking (2007)
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: https://EconPapers.repec.org/RePEc:uct:uconnp:2004-28

Access Statistics for this paper

More papers in Working papers from University of Connecticut, Department of Economics University of Connecticut 365 Fairfield Way, Unit 1063 Storrs, CT 06269-1063. Contact information at EDIRC.
Bibliographic data for series maintained by Mark McConnel ().