Title: Performance of commercial banks in India: a non-parametric Malmquist index-based DEA approach

Authors: Kanika Sachdeva; P. Sivakumar

Addresses: EMPI Business School, #138, Faculty Block, Satbari, Chattarpur, New Delhi – 110074, India ' EMPI Business School, #135, Faculty Block, Chattarpur, New Delhi – 110074, India

Abstract: The present study evaluates productivity and efficiency of Indian commercial banks in terms of TFP growth, technological change and technical efficiency performances. Efficiency have been computed using data envelopment analysis-based Malmquist productivity index for the balanced panel data set of 70 commercial banks operating in India from 2005-2017. The analysis has been carried out in two stages, all banks as a single group and three bank categories individually. The results of all banks analysis revealed that, 44% banks have recorded positive change in TFPG and category wise analysis revealed that, technological change is found to be the primary reason for positive change in TFPG of 68% private banks. Also, 15% public sector banks and 32% foreign banks recorded positive TFPG. The study concludes that there is enough scope for improvement in the performance of Indian public sector banks in comparison of its counterparts in terms of productivity and efficiency.

Keywords: data envelopment analysis; DEA; commercial banks; Malmquist index; technical efficiency; India.

DOI: 10.1504/IJBG.2022.128175

International Journal of Business and Globalisation, 2022 Vol.32 No.4, pp.392 - 413

Received: 16 May 2018
Accepted: 20 May 2019

Published online: 10 Jan 2023 *

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