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Efficiency And Productivity Growth In Indian Banking

Author

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  • S. S. RAJAN

    (Sri Sathya Sai Institute of Higher Learning,Prasanthinilayam Campus,Anantapur District, (A.P.))

  • K. L. N. REDDY

    (Sri Sathya Sai Institute of Higher Learning,Prasanthinilayam Campus,Anantapur District, (A.P.))

  • V. N. PANDIT

    (Sri Sathya Sai Institute of Higher Learning,Prasanthinilayam Campus,Anantapur District, (A.P.))

Abstract

This paper attempts to examine technical efficiency and productivity performance of Indian scheduled commercial banks, for the period 1979-2008. We model a multiple output/multiple input technology production frontier using semiparametric estimation methods. The endogenity of multiple outputs is addressed by semi parametric estimates in part by introducing multivariate kernel estimators for the joint distribution of the multiple outputs and correlated random effects. Output is measured as the rupee value of total loans and total investments at the end of the year. The estimates provide robust inferences of the productivity and efficiency gains due to economic reforms.

Suggested Citation

  • S. S. Rajan & K. L. N. Reddy & V. N. Pandit, 2011. "Efficiency And Productivity Growth In Indian Banking," Working papers 199, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:199
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    Cited by:

    1. Muneer Babu M. & Praveen Kulshreshtha, 2014. "Productivity Change and Technical Efficiency in Indian Microfinance Institutions," Studies in Microeconomics, , vol. 2(2), pages 165-200, December.
    2. Kishor Hakuduwal, Ph.D., 2018. "Technical Efficiency of Nepalese Banking Sector," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 30(2), pages 1-35, October.

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    More about this item

    Keywords

    Banking; Frontier efficiency; Productivity;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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