Efficiency of Indian banks during 1999-2008: a stochastic frontier approach.
- Resource Type
- Article
- Authors
- Sreeramulu, M.; Vaz, Nancy H.; Kumar, Sharad
- Source
- International Journal of Financial Services Management. 2010, Vol. 4 Issue 4, p298-310. 13p.
- Subject
- *BANKING industry
*INDUSTRIAL efficiency
*STOCHASTIC models
EFFECT of income maintenance programs on labor supply
- Language
- ISSN
- 1460-6712
The article presents a study comparing the efficiency of the banking industry in India in two periods such as 1999-2003 and 2004-2008. The study used a Cobb-Douglas stochastic frontier model to analyze the data obtained from the Reserve Bank of India (RBI) and estimate the industry's efficiency. Results show a significant mean efficiency increase from 30% in 1999-2003 to 64% in 2004-2008 and the labour efficiency has increased from 74% in 1999-2003 to 98% in 2004-2008.