scholarly journals How efficient are public sector banks in India? A non-parametric approach

2020 ◽  
Vol 15 (4) ◽  
pp. 108-120
Author(s):  
Sangeetha R
Keyword(s):  
Public Sector ◽  
Technical Efficiency ◽  
Productivity Growth ◽  
Data Envelopment ◽  
Managerial Performance ◽  
Public Sector Banks ◽  
Fixed Assets ◽  
Dea Analysis ◽  
Input Variables ◽  
Using Data

This study examines the efficiency of Public Sector Banks (PSBs) in India using Data Envelopment Analysis (DEA). Analysis is carried out on a sample of 19 PSBs that are existed during the study period from 2005 to 2018. There are two different aspects deliberated, namely technical efficiency of PSBs and the growth in their productivity. Input variables envisaged for the study are deposits, borrowings, fixed assets, and the number of employees. Loans and advances along with investments act as output variables to measure technical efficiency and productivity. The results indicate that the technical efficiency of PSBs ranges between 97% and 100%. Corporation Bank, Indian Bank, and Oriental Bank of Commerce outperformed their peers with 100% technical efficiency. Productivity growth among the sampled banks during the study period stood between 0.8% and 20%. However, Corporation Bank, Indian Bank, and Oriental Bank of Commerce registered 9.1%, 5.4% and 6.4% productivity growth, respectively. The results reveal that PSBs are working hard to optimize resource utilization. Researchers around the world can use DEA as a tool to measure the efficiency of banks with different input and output variables related to financial, marketing and managerial performance. AcknowledgmentI like to express my profound thanks to Dr Kishore Selva Babu for rendering his language expertise. I also thank all the anonymous reviewers for their valuable comments and feedback that greatly improved the manuscript.

scholarly journals An Analysis of Revenue Maximising Efficiency of Public Sector Banks in the Post-Reforms Period

2017 ◽  
Vol 6 (1) ◽  
pp. 111-125 ◽  
Author(s):  
Ombir Singh ◽  
Sanjeev Bansal
Keyword(s):  
Regression Analysis ◽  
Public Sector ◽  
Technical Efficiency ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Public Sector Banks ◽  
Using Data ◽  
Tobit Regression Analysis ◽  
The Impact

Abstract The paper investigates and compares the performance of the Indian public sector banks (PSBs) based on revenue maximising efficiency in the deregulation period from 2001-02 to 2012-13. Several efficiency estimates viz., overall technical efficiency, pure technical efficiency and scale efficiency of individual banks are calculated using Data Envelopment Analysis (DEA). The empirical findings indicate the presence of managerial and scale inefficiencies in the operation of the most of the PSBs. Applying the Tobit regression analysis, the paper also assesses the impact of different environmental factors, like profitability, the level of non-performing assets, size etc. on the efficiency of PSBs. It is observed that banks with high profitability, low level of non-performing assets, and relatively larger size are more technically efficient.

scholarly journals Evaluating the nationalization & privatization effect: a case of Indian banking industry

2018 ◽  
Vol 13 (1) ◽  
pp. 11-21 ◽  
Author(s):  
Manju Rajan Babu ◽  
Ashok Kumar M.
Keyword(s):  
Data Envelopment Analysis ◽  
Public Sector ◽  
Banking Industry ◽  
Data Envelopment ◽  
Financial Reports ◽  
The Public ◽  
Public Sector Banks ◽  
Effective Performance ◽  
Using Data ◽  
Indian Banks

The facilitation of economic transactions and friendly investor environment is undertaken through effective performance of financial systems. Mobilization of savings and funding the profitable business opportunities are essential in improving the efficiency of intermediation. The study aims to evaluate the effects of nationalization and privatization on Indian banks. Various factors have been considered to examine the effects of privatization and nationalization, including sources of public sector inefficiency, measures of firm performance, econometric issues, and the mode of privatization. The data was collected for the period of 1998 to 2016 from Indian banks. Data Envelopment Analysis (DEA) was used to evaluate the financial reports of the banks selected to evaluate the efficiency of input and output variables. Positive results were observed, concerning the efficiency and profitability of banking industry after banks’ privatization. Performance of private banks has been observed effective and efficient as compared to the public sector banks. Privatization of banks must be increased and maintained to sustain the efficiency of the banks and implement strategies to maintain the assets. Future studies may recruit more appropriate sample size to evaluate the privatization and nationalization effects of Indian banking industry. Greater number of banks will provide more precise results, using data envelopment analysis.

scholarly journals Komparasi Efisiensi Teknis Bank Umum Konvensional (BUK) dan Bank Umum Syariah (BUS) di Indonesia Dengan Metode Data Envelopment Analysis (DEA)

2014 ◽  
Vol 6 (2) ◽  
pp. 179-194
Author(s):  
Abdul Wahab ◽  
Muhammad Nadratuzzaman Hosen ◽  
Syafaat Muhari
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Third Party ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Parametric Data ◽  
Fixed Assets ◽  
Input Variables ◽  
Conventional Banks ◽  
Better Than

The Comparation of Technical Efficiency Between Conventional Banks and Islamic Banks in Indonesia Using DEA MethodThis research is to compare the levels of technical efficiency between BUK and BUS by employing non-parametric Data Envelopment Analysis (DEA). This research assigns Third Party Funds, Labor Expenses and Fixed Assets which are input variable, meanwhile Total Credit and Other Incomes are determined as Output Variables. This research also examines the Profitability of BUK and BUS by Using Panel Regression Model with CAR, LDR, NPL and BOPO as independent variables, where ROA and ROE are dependent variables. The result showed that the average technical efficiency of the Conventional Banks is better than that of the Islamic Banks. That is because of the inefficient utilization of Input Variables, namely Third Party Funds, Labor Expenses and Fixed Assets in the Islamic Banks  DOI:10.15408/aiq.v6i2.1229

scholarly journals Role of public sector banks towards financial inclusion during pre and post introduction of PMJDY: a study on efficiency review

2020 ◽  
Vol 14 (2) ◽  
pp. 95-105
Author(s):  
Sudarshan Maity ◽  
Tarak Nath Sahu
Keyword(s):  
Public Sector ◽  
Technical Efficiency ◽  
Financial System ◽  
Financial Inclusion ◽  
Content Type ◽  
The Public ◽  
Public Sector Banks ◽  
Input Variables ◽  
Two Phases ◽  
The Impact

Purpose An inclusive financial system is essential to develop the country’s economy. A massive shift in financial inclusion was observed by the initiative of government to include financially excluded into the formal financial system by launching Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014. This paper aims to attempt to examine the efficiency of public sector banks in financial inclusion during pre and post introduction of PMJDY. Design/methodology/approach The data envelopment analysis is used to measure the efficiency of the banks towards financial inclusion for the periods, 2010–2011 to 2013–2014 as pre-introduction and 2014–2015 to 2017–2018 as post-introduction phase. For this study, supply-side parameters of financial inclusion considered as input variables and demand-side parameters as output variables. Findings The study finds that overall average efficiency towards financial inclusion increases significantly during post-phase, though all the public sector banks are not performing equally. There is a significant variation in efficiency level between them and even between the two periods. Further, there is a huge opportunity to enhance technical efficiency with the same quantity of input which will help to achieve the target of financial inclusion. Originality/value A comparative study between the two phases has taken place to analyse the impact of the scheme on the technical efficiency of banks. One of the notable innovativeness of this study is that, unlike most of the previous studies which are mostly theoretical and conceptual, the present study may place itself as a unique inquiry in the domain of efficiency review of public sector banks during pre and post introduction of PMJDY.

Asset Quality Based Ranking of Indian Commercial Banks – A Non-Parametric Approach

2007 ◽  
Vol 3 (2) ◽  
pp. 27-37
Author(s):  
Ram Pratap Sinha
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Commercial Banks ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Public Sector Banks ◽  
Asset Quality

The present paper tries to make an asset quality based ranking of select (28) Indian commercial banks (20 public sector and eight private sector commercial banks) for the five year period 2000–01 to 2005–06 using Data Envelopment Analysis – a non parametric tool. The paper also compares the observed banks in terms of total factor productivity growth for the aforementioned period. The results obtained from the exercise indicate improvement in mean technical efficiency scores in 2004–05 relative to the previous four years. However, mean technical efficiency showed a declined in the next year. The observed private sector banks exhibited higher mean technical efficiency relative to the observed public sector banks for 2000–01 to 2003–04 (and 2005–06) while the reverse is true for 2004–05. The public sector banks, however, exhibit higher mean scale efficiency relative to the observed private sector banks. In so far as total factor productivity growth is concerned, the observed public sector commercial banks exhibited relatively higher Malmquist TFP growth than the observed private sector banks. However, the commercial banks, across ownership groups, exhibited negative mean total factor productivity growth. The negative growth (in real terms) may be the result of emphasis laid on off balance sheet activities on the part of the commercial banks

scholarly journals Technical efficiency among agricultural households and determinants of food security in East Java, Indonesia

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Rachman Hakim ◽  
Tri Haryanto ◽  
Dyah Wulan Sari
Keyword(s):  
Food Security ◽  
Technical Efficiency ◽  
Data Envelopment ◽  
Rice Farming ◽  
Logit Regression ◽  
Agricultural Households ◽  
And Gender ◽  
Using Data ◽  
Land Size ◽  
Average Consumption

AbstractRice is a staple food in East Java, and the average consumption is 100 kg/capita/year. However, rice productivity has declined dramatically in recent years. Food security can be reached by improving the technical efficiency of rice farming, especially in rice farming centers such as East Java Province. This study aims to measure technical efficiency and its determinants using two limit tobit. And it also aims to examine the effect of the technical efficiency of rice farming on food security using logit regression. Technical efficiency will be measured by using data envelopment analysis (DEA). The results show that the technical efficiency of rice farming is very low in East Java. Government assistance, irrigation, and extension have a significant effect on technical efficiency. Meanwhile, membership of farmer organization has no effect on technical efficiency. Around 69% of farmers can be categorized as food secure households. The estimation of logit regression shows that household size, income, land size, education, age, and gender significantly influence food security in East Java. Meanwhile, credit and technical efficiency did not have any significant effect.

scholarly journals The Measurement of Innovation Efficiency of Chinese High-tech Industry Using Data Envelopment Analysis

2015 ◽  
Vol 65 (s2) ◽  
pp. 101-113 ◽  
Author(s):  
Ling Jiang ◽  
Yunyu Jiang ◽  
Zhijun Wu ◽  
Dongsheng Liao ◽  
Runfa Xu
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Environmental Variables ◽  
Scale Efficiency ◽  
High Tech ◽  
Data Envelopment ◽  
High Tech Industry ◽  
Economic Competitiveness ◽  
Development Level ◽  
Using Data

In the era of knowledge economy, a country’s economic competitiveness depends largely on the development level of high-tech industry. This paper evaluates the efficiency of China’s high-tech industry in 31 provinces in 2012 with data envelopment analysis. The empirical results are summarized as following. Firstly, when the effects of exogenous environmental variables are not controlled, the comprehensive technical efficiency of 31 provinces will be overestimated, the pure technical efficiency will be underestimated, and the scale efficiency value will be overestimated. Secondly, after eliminating the environmental impact, the comprehensive technical efficiency of 31 provinces with the average of 0.395 is rather low, due to the low scale efficiency.

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