Title: Efficiency of public sector banks in achieving the goal of PMJDY and PMMY

Authors: Varuna Agarwala; Tarak Nath Sahu; Sudarshan Maity

Addresses: Department of Commerce, Vidyasagar University, Midnapore-721 102, West Bengal, India ' Department of Commerce, Vidyasagar University, Midnapore-721 102, West Bengal, India ' The Institute of Cost Accountants of India, 12, Sudder Street, Kolkata-700016, West Bengal, India

Abstract: The present study investigates the performance of public sector banks towards their role in achieving the target of financial and social inclusion with regards to the 'Pradhan Mantri Jan Dhan Yojana (PMJDY) ' and 'Pradhan Mantri Mudra Yojana (PMMY) ' in India. The performance has been measured using technical efficiency by applying data envelopment analysis over 2015-2016 to 2018-2019. The study finds that the participation of banks is at different levels under the two schemes of PMJDY and PMMY and overall, their weighted efficiency index varies from 62.6% to 70.6%. Further, the Spearman rank correlation has been calculated to know the correlation between overall ranks according to the technical efficiency score of PMJDY and PMMY. The overall weighted efficiency index and technical efficiency scores calculated for the two schemes indicate that the public sector banks group can enhance their efficiency by escalating their output level without changing the input quantity.

Keywords: financial inclusion; social inclusion; Pradhan Mantri Jan Dhan Yojana; PMJDY; Pradhan Mantri Mudra Yojana; PMMY; technical efficiency; data envelopment analysis; DEA.

DOI: 10.1504/IJEBR.2022.124290

International Journal of Economics and Business Research, 2022 Vol.24 No.1/2, pp.234 - 256

Received: 22 Nov 2020
Accepted: 08 Jan 2021

Published online: 21 Jul 2022 *

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