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Analysing the Technical Efficiency of Rural Cooperative Banks in India

Author

Listed:
  • Aadil Ummar Zaman
  • Mohammad Shahid Zaman
  • Nisar Ahmad Khan

    (Aadil Ummar Zaman)

Abstract

Using data envelopment analysis, this paper investigates the technical efficiency of rural cooperative banks in India from 2013 to 2019. The results indicate a continuous deterioration in efficiency as well as a large asymmetry between states regarding the technical efficiency estimates. Our results highlight the need for improving risk management and lending operations of banks for sustainable increase in the performance of the cooperative banking sector in India.

Suggested Citation

  • Aadil Ummar Zaman & Mohammad Shahid Zaman & Nisar Ahmad Khan, 2022. "Analysing the Technical Efficiency of Rural Cooperative Banks in India," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 3(4), pages 1-6.
    • Handle: RePEc:ayb:jrnael:79
    DOI: 2022/11/08
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    References listed on IDEAS

    as
    1. Ali Ataullah & Hang Le, 2006. "Economic reforms and bank efficiency in developing countries: the case of the Indian banking industry," Applied Financial Economics, Taylor & Francis Journals, vol. 16(9), pages 653-663.
    2. Sunil Kumar & Rachita Gulati, 2014. "Deregulation and Efficiency of Indian Banks," India Studies in Business and Economics, Springer, edition 127, number 978-81-322-1545-5, March.
    3. Abhiman Das & Saibal Ghosh, 2006. "Financial deregulation and efficiency: An empirical analysis of Indian banks during the post reform period," Review of Financial Economics, John Wiley & Sons, vol. 15(3), pages 193-221.
    4. Mohammad Shahid Zaman & Anup Kumar Bhandari, 2020. "Financial deregulation, competition and cost efficiency of Indian commercial banks: is there any convergence?," Indian Economic Review, Springer, vol. 55(2), pages 283-312, December.
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    1. Aadil Ummar Zaman & Nisar Ahmad Khan, 2023. "Decomposition of productivity growth among the cooperative banks in Jammu and Kashmir (India)," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.

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    More about this item

    Keywords

    Technical efficiency; Data envelopment analysis; Rural cooperative banks;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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