Comparison Between Public and Private Sector Banks
University of Connecticut
DigitalCommons@UConn
Economics Working Papers Department of Economics
9-1-2004
Productivity Growth and Efficiency in Indian Banking: A Comparison of Public, Private, and Foreign Banks
T.T. Ram Mohan
Indian Institute of Management, Ahmedabad
Subhash C. Ray
University of Connecticut
Recommended Citation
Mohan, T.T. Ram and Ray, Subhash C., "Productivity Growth and Efficiency in Indian Banking: A Comparison of Public, Private, and Foreign Banks" (2004). Economics Working Papers. Paper 200427. http://digitalcommons.uconn.edu/econ_wpapers/200427
This is brought to you for free and open access by the Department of Economics at DigitalCommons@UConn. It has been accepted for inclusion in Economics Working Papers by an authorized administrator of DigitalCommons@UConn. For more information, please contact digitalcommons@uconn.edu.
Department of Economics Working Paper Series
Productivity Growth and Efficiency in Indian Banking: A Comparison of Public, Private, and Foreign Banks T. T. Ram Mohan
Indian Institute of Management, Ahmedabad
Subhash Ray
University of Connecticut
Working Paper 2004-27 September 2004
341 Mansfield Road, Unit 1063 Storrs, CT 06269–1063 Phone: (860) 486–3022 Fax: (860) 486–4463 http://www.econ.uconn.edu/
Abstract
India’s public sector banks (PSBs) are compared unfavorably with their private sector counterparts, domestic and foreign. This comparison rests, for the most part, on financial measures of performance, and such a comparison provides much of the rationale for privatization of PSBs.In this paper, we attempt a comparison between PSBs and their private sector counterparts based on measures of productivity that use quantities of outputs and inputs. We employ two measures of productivity: Tornqvist and Malmquist total factor productivity growth. We attempt these comparisons over the period 1992-2000, comparing PSBs with both domestic private and foreign banks. Out of a total of four comparisons we have made, there
DigitalCommons@UConn
Economics Working Papers Department of Economics
9-1-2004
Productivity Growth and Efficiency in Indian Banking: A Comparison of Public, Private, and Foreign Banks
T.T. Ram Mohan
Indian Institute of Management, Ahmedabad
Subhash C. Ray
University of Connecticut
Recommended Citation
Mohan, T.T. Ram and Ray, Subhash C., "Productivity Growth and Efficiency in Indian Banking: A Comparison of Public, Private, and Foreign Banks" (2004). Economics Working Papers. Paper 200427. http://digitalcommons.uconn.edu/econ_wpapers/200427
This is brought to you for free and open access by the Department of Economics at DigitalCommons@UConn. It has been accepted for inclusion in Economics Working Papers by an authorized administrator of DigitalCommons@UConn. For more information, please contact digitalcommons@uconn.edu.
Department of Economics Working Paper Series
Productivity Growth and Efficiency in Indian Banking: A Comparison of Public, Private, and Foreign Banks T. T. Ram Mohan
Indian Institute of Management, Ahmedabad
Subhash Ray
University of Connecticut
Working Paper 2004-27 September 2004
341 Mansfield Road, Unit 1063 Storrs, CT 06269–1063 Phone: (860) 486–3022 Fax: (860) 486–4463 http://www.econ.uconn.edu/
Abstract
India’s public sector banks (PSBs) are compared unfavorably with their private sector counterparts, domestic and foreign. This comparison rests, for the most part, on financial measures of performance, and such a comparison provides much of the rationale for privatization of PSBs.In this paper, we attempt a comparison between PSBs and their private sector counterparts based on measures of productivity that use quantities of outputs and inputs. We employ two measures of productivity: Tornqvist and Malmquist total factor productivity growth. We attempt these comparisons over the period 1992-2000, comparing PSBs with both domestic private and foreign banks. Out of a total of four comparisons we have made, there
References: Banker, R.D., A. Charnes, and W.W. Cooper (1984), “Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis,” Management Science, 30:9 (September), 1078-92. Sarkar, Jayati, Sarkar, Subrata and Bhaumik, Suman K. (1998) ‘Does ownership always matter? – evidence from the Indian banking industry’, Journal of Comparative Economics 26: 262-81.