Assessing Performance of Banks in India Fifty Years After Nationalization (eBook)

Atanu Sengupta, Sanjoy De (Autoren)

eBook Download: PDF

2020 | 1st ed. 2020
XIX, 232 Seiten
Springer Singapore (Verlag)
978-981-15-4435-4 (ISBN)

Infos

This book assesses the performance of banks in India over the past several decades, and discusses their current status after fifty years of nationalization. The performance of different categories of banks is evaluated by employing both the traditional ratio analysis and more sophisticated efficiency techniques. The book also explores the market conditions under which Indian banks operate. Going beyond a formal banking study, the book also investigates the causes of the widespread presence of informal credit in parallel to its formal banking counterpart. This approach makes it more comprehensive, unique and closer to the real world.

After 50 years of nationalization, India's banking sector is at a crossroads, given the huge and unabated non-performing assets and talks of consolidation. This book, encompassing both the formal and the predominantly 'trust-based' informal credit system, provides essential insights for bankers and policymakers, which will be invaluable in their endeavours to implement meaningful changes. It may also spark new research in the fields of banking performance and efficiency analysis. Lastly, the book not only has significant implications for students of economics, banking, finance and management, but also offers an important resource to support training courses for banking personnel in India.

Dr Atanu Sengupta is a Professor at the Department of Economics, Burdwan University, West Bengal, India, where he has been teaching for more than a decade. He obtained his Ph.D. from the Economic Research Unit, Indian Statistical Institute (ISI), Kolkata. He has published over 45 papers in various refereed national and international journals such as Economic and Political Weekly, Sankhya, Social Indicators Research, International Journal of Education and Development, Indian Economic Review, Asia Pacific Development Journal, and Asia Pacific Journal of Education and Development, and has also contributed chapters in various edited volumes. He also published eight books, including two edited volumes. He is a regular reviewer for several reputed national and international journals. His areas of interest include econometrics, financial economics, development economics, microeconomics and growth theory.

Dr Sanjoy De is an Assistant Professor, Shyampur Siddheswari Mahavidyalaya, under the University of Calcutta, West Bengal, India. Previously, he served as Lead Analyst in Zacks Investment Research in Kolkata and as Senior Analyst at ICFAI University Press, Hyderabad, India. He obtained his Ph.D. in Economics from Burdwan University, Burdwan, West Bengal, India. At ICFAI, he was responsible for writing numerous articles on business, finance and economics. He has also published papers in Indian Economic Journal, Journal of Income and Wealth, Mainstream Weekly and others. His areas of interest include banking, microeconomics and statistics.

Inhalt

Preface 7
Contents 9
About the Authors 12
List of Figures 13
List of Tables 14
1 Introduction 17
1.1 Background 17
1.2 Plan of Study 20
1.3 Objectives 22
References 22
2 Bank Nationalization: Background and Formulation 23
2.1 Evolution of Banks in India 23
2.1.1 The Early Phase 24
2.1.2 Development of Banks in the Pre-independence Era 25
2.2 Background and Rationale of Bank Nationalization 26
2.3 Indian Banks in the Modern Era 28
References 29
3 Review of Literature 30
3.1 Introduction 30
3.2 Conventional Banking Performance Studies 31
3.3 Review of Studies of Bank Efficiency in India Using DEA Technique 34
3.4 Review of Studies of Bank Efficiency Using Window DEA Technique 40
3.5 Weakness of the Earlier Studies 42
References 43
4 Issues in Data Selection and Description of Data 46
4.1 Introduction 46
4.1.1 Issues in the Selection of Inputs and Outputs 46
4.2 Data Set and Time Period 48
4.2.1 Description of the Inputs and Outputs 49
4.3 Description of the Independent Variables Used 56
References 59
5 Conventional Analysis of Banks’ Performance 60
5.1 Introduction 60
5.2 Parameters of Banks’ Performance: Issues of Measurement 61
5.3 Description of Various Conventional Performance Indicators of Banks 62
5.4 Analytical Evaluation of the Conventional Performance of Banks 64
5.5 Conclusion 70
References 75
6 Measurement of Competition 76
6.1 Introduction 76
6.1.1 Banks and Competition in India: Some Debates 76
6.2 Toward Measurement of Competitiveness–Various Issues 77
6.3 Research Methodology–Panzar-Rosse Model 79
6.4 Data and Empirical Findings 81
6.5 Conclusion 86
References 86
7 Measurement of Banks’ Performance by Using Super-Efficiency DEA Model 88
7.1 Introduction 88
7.2 Efficiency Measurement—A Prelude 89
7.3 Methodology 91
7.3.1 Data Envelopment Analysis 91
7.3.2 Measurement of Super-Efficiency 97
7.4 Analysis of Efficiency and Super-Efficiency Results 99
7.4.1 Analysis of Results for Model A 100
7.4.2 Analysis of Results for Model B 104
7.5 Analysis of the Regression Results and Digging into the Causes of Inefficiency 108
7.5.1 Model A 109
7.5.2 Model B 111
7.6 Conclusion 111
References 113
8 Measuring Efficiency of Indian Banks Using Window DEA Analysis 115
8.1 Introduction 115
8.2 Conceptual Framework and Methodology 116
8.3 Findings and Analysis of Window DEA Results 118
8.3.1 Pattern of Changes in Efficiency Score over Time—Model A 118
8.3.2 Pattern of Changes in Efficiency Score over Time—Model B 120
8.3.3 Pattern of Changes in Efficiency Score Across Windows 121
8.4 Conclusion 124
References 124
9 Informal Banking, Trust and Mutual Reciprocity 126
9.1 Introduction 126
9.2 Trust, Mutual Reciprocity and Credit 129
9.3 Trust and Credit: Indian Scenario 130
9.3.1 Macro Perspective 131
9.3.2 Micro-field Observations 136
9.4 Summing Up 144
References 144
10 Summation and Future Roadmap 146
10.1 Introduction 146
10.2 The Rationale for Bank Efficiency Analysis 147
10.3 Perspectives of Bank Efficiency Analysis 148
10.3.1 Results from Efficiency Analysis 149
10.3.2 Policy Issues 150
10.4 Analysis of Banking Market Structure 151
10.4.1 Market and Banking Market 151
10.4.2 Competition in the Banking Market 151
10.4.3 Empirical Results and Interpretation 152
10.4.4 Policy Issues 152
10.5 Issues in Informality 153
10.5.1 Informality in Credit Market and Trust 153
10.5.2 Some Forays into the Policy 154
10.6 Conclusion 154
References 155
Appendix A 157
Appendix B 229
Annexure: List of Different Categories of Banks 242

Produkt-Details

• Erscheint lt. Verlag: 21.4.2020
• Reihe/Serie: India Studies in Business and Economics
• Reihe/Serie: India Studies in Business and Economics
• Zusatzinfo: XIX, 232 p. 9 illus., 4 illus. in color.
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Bankbetriebslehre
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Finanzwissenschaft
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• Schlagworte: Bank efficiency • Banking • Banking Sector • Bank Nationalisation • Bank performance • Competition
• ISBN-10: 981-15-4435-2 / 9811544352
• ISBN-13: 978-981-15-4435-4 / 9789811544354