Deregulation and Efficiency of Indian Banks

Deregulation and Efficiency of Indian Banks

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a€‹ The goal of this book is to assess the efficacy of Indiaa€™s financial deregulation programme by analyzing the developments in cost efficiency and total factor productivity growth across different ownership types and size classes in the banking sector over the post-deregulation years. The work also gauges the impact of inclusion or exclusion of a proxy for non-traditional activities on the cost efficiency estimates for Indian banks, and ranking of distinct ownership groups. It also investigates the hitherto neglected aspect of the nature of returns-to-scale in the Indian banking industry. In addition, the work explores the key bank-specific factors that explain the inter-bank variations in efficiency and productivity growth. Overall, the empirical results of this work allow us to ascertain whether the gradualist approach to reforming the banking system in a developing economy like India has yielded the most significant policy goal of achieving efficiency and productivity gains. The authors believe that the findings of this book could give useful policy directions and suggestions to other developing economies that have embarked on a deregulation path or are contemplating doing so.The levels of profitability of banks were low by international standards; the volume of bad loans was on the rise; the banks had little loanable ... The main research question addressed in this book is: Did financial deregulation spur the efficiency and productivity of Indian banks? Some supplementary questions that have also been addressed in this book are: (i) Does the inclusion of non- traditional activitiesanbsp;...

Title:Deregulation and Efficiency of Indian Banks
Author:Sunil Kumar, Rachita Gulati
Publisher:Springer Science & Business Media - 2013-10-23


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