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Operational Efficiency of Foreign Banks Operating in India: A Non-Parametric Model

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  • V K Shobhana
  • G Shanthi

Abstract

Liberalization of the Indian financial sector has thrown open the doors for Foreign Banks (FBs) to spread their wings far and wide. This has resulted in an increasingly competitive environment in the Indian banking industry. Consequently, many FBs, with their financial muscle power, have attained commanding heights in India. This paper assesses the operational efficiency of FBs in India using the data for the period 1996-97 to 2004-05. The authors use ANOVA (Analysis of Variance) to find that there is no significant relationship between operational efficiency and variables such as size of assets, branch network and stall strength.

Suggested Citation

  • V K Shobhana & G Shanthi, 2008. "Operational Efficiency of Foreign Banks Operating in India: A Non-Parametric Model," The IUP Journal of Bank Management, IUP Publications, vol. 0(1), pages 41-49, February.
    • Handle: RePEc:icf:icfjbm:v:7:y:2008:i:1:p:41-49
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