Technical Efficiency and Its Determinants: A Panel Data Analysis of Indian Public and Private Sector Banks

D. Singh, G. Malik
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引用次数: 4

Abstract

Research aim: The purpose of this paper is to measure the performance of Indian public and private sector banks by estimating their technical efficiency scores and further to investigate the factors affecting technical efficiency of Indian banks. This paper also investigates the ownership effect on the technical efficiency of the banks. Design/ Methodology/ Approach: Data envelopment analysis (DEA), CCR model was used to estimate relative efficiency scores of 39 banks using annual data for the time period 2012 to 2016. Further Pooled regression model was used to examine the determinants of bank efficiency and one-way ANOVA to investigate the ownership effect on bank’s technical efficiency. Research finding: The results showed a significant difference between the efficiencies of the public and private sector banks. During the sample period the average efficiency score of Indian banks has been improving from 0.78 in 2012 to 0.81 in 2016. Further, the new private sector banks turned out to be more efficient than public and old private sector banks. The regression results show that profitability and staff productivity are the only significant variables affecting efficiency. Bank size and GDP are found to be insignificant at 5 per cent. Theoretical contribution/ Originality: The paper considers a much broader approach to investigating the technical efficiency of Indian banks. This is the first study that examines and compares the efficiency of Indian commercial into three bank categories; public sector banks, new private sector banks and old private sector banks. Practitioner/ Policy implication: The findings of this study are expected to provide useful insights to the Reserve Bank of India (RBI) for policy making, in general, for all the banks. RBI needs to closely monitor the working and performance of inefficient public sector banks in India. Indian government perhaps can consider to merge these inefficient banks in order to make them more competitive. Research limitation/ Implication: Future work could extend this study by working on efficiency and the degree of competition among Indian banks. There is also a scope of doing research on impact of service quality dimensions on technical efficiency of banks in India. Keywords: Commercial Banks, DEA, Indian Banking Sector, Regression, Technical Efficiency Type of article: Research paper JEL Classification: G21, C24
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技术效率及其决定因素:印度公共和私营部门银行的面板数据分析
研究目的:本文的目的是通过估算印度公共和私营部门银行的技术效率得分来衡量其绩效,并进一步研究影响印度银行技术效率的因素。本文还考察了股权对银行技术效率的影响。设计/方法/方法:采用数据包络分析(DEA)、CCR模型,利用2012年至2016年的年度数据估计39家银行的相对效率得分。进一步采用集合回归模型检验银行效率的决定因素,并采用单因素方差分析分析所有制对银行技术效率的影响。研究发现:结果显示,公共和私营部门银行的效率之间存在显著差异。在样本期内,印度银行的平均效率得分从2012年的0.78分提高到2016年的0.81分。此外,事实证明,新的私营部门银行比公共和旧的私营部门银行效率更高。回归结果表明,盈利能力和员工生产率是影响效率的唯一显著变量。发现银行规模和GDP在5%时不显著。理论贡献/独创性:本文考虑了一种更广泛的方法来调查印度银行的技术效率。这是第一个将印度商业银行的效率分为三类的研究;公共部门银行,新的私营部门银行和旧的私营部门银行。从业者/政策含义:本研究的结果有望为印度储备银行(RBI)的政策制定提供有用的见解,总的来说,为所有银行。印度储备银行需要密切监控印度效率低下的公共部门银行的工作和表现。印度政府也许可以考虑合并这些效率低下的银行,以使它们更具竞争力。研究局限/启示:未来的工作可以通过研究印度银行之间的效率和竞争程度来扩展本研究。服务质量维度对印度银行技术效率的影响也有一定的研究范围。关键词:商业银行DEA印度银行业回归技术效率文章类型:研究论文JEL分类:G21 C24
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