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Competition in the Indian Banking Sector: A Panel Data Approach

Author

Listed:
  • Zhiheng Li

    (Faculty of Science & Technology, University of Canberra, Canberra, ACT 2617, Australia)

  • Shuangzhe Liu

    (Faculty of Science & Technology, University of Canberra, Canberra, ACT 2617, Australia)

  • Fanda Meng

    (Faculty of Science & Technology, University of Canberra, Canberra, ACT 2617, Australia)

  • Milind Sathye

    (Faculty of Business, Government and Law, University of Canberra, Canberra, ACT 2617, Australia)

Abstract

The paper aims to assess the level of competition in the Indian banking sector overall as well as within the three groups of banks: foreign owned, state owned (public sector), and privately owned. We use panel data for the period from 2005–2018. We found that the overall competition in the Indian banking sector is strong, although there are differences by type of bank ownership. The Indian banking market continues to be characterized by monopolistic competition. The various policy measures taken by the Indian government in recent years appear to have helped boost competition. A policy suggestion would be to further liberalize the banking sector for foreign investment.

Suggested Citation

  • Zhiheng Li & Shuangzhe Liu & Fanda Meng & Milind Sathye, 2019. "Competition in the Indian Banking Sector: A Panel Data Approach," JRFM, MDPI, vol. 12(3), pages 1-16, August.
    • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:3:p:136-:d:259962
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    References listed on IDEAS

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    4. Bijoy Rakshit & Samaresh Bardhan, 2022. "Does Bank Efficiency Enhance Bank Performance? Empirical Evidence From Indian Banking," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 25(Special I), pages 103-124, March.

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