Benchmarking Indian banks using DEA in post-reform period: A progressive time-weighted mean approach

Service Industries Journal

Volumn 31, Issue 14, 2011, Pages 2455-2485

  Kumar, Mukesh ^a   Vincent, Charles ^a  

^a CENTRUM CATÓLICA GRADUATE BUSINESS SCHOOL   (Peru)

Author keywords

DEA; Fixed benchmarking; Indian banks; Progressive time weighted mean; Variable benchmarking

Indexed keywords

BANKING; BENCHMARKING; DATA ENVELOPMENT ANALYSIS; FIRM OWNERSHIP; INDUSTRIAL PERFORMANCE; NUMERICAL MODEL; PRIVATE SECTOR; PUBLIC SECTOR; STATISTICAL ANALYSIS;

INDIA;

EID: 78649870781     PISSN: 02642069     EISSN: 17439507     Source Type: Journal    
DOI: 10.1080/02642069.2010.504818     Document Type: Article

References (59)

1. Afrait, S.N. (1972). Efficiency estimation of production functions. International Economic Review, 13(3), 568-598.
2. Ahuja, S. (1999). Efficiency and market demand: Indian and foreign corporate sector in India. Economic and Political Weekly, 34(28), 1948-1954.
3. Akhtar, M.H. (2002). X-efficiency analysis of commercial banks in Pakistan: A preliminary investigation. The Pakistan Development Review, 41(4), 567-580.
4. Andersen, P., & Petersen, N.C. (1993). A procedure for ranking efficient units in data envelopment analysis. Management Science, 39(10), 1261-1265.
5. Avkiran, N.K. (1999). Productivity analysis in the services sector with data envelopment analysis (1st ed.). Queensland: Camira.
6. Banker, R.D., Charnes, A., & Cooper, W.W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 30(9), 1078-1092.
7. Bell, F.W., & Murphy, N.B. (1968). Economies of scale and division of labor in commercial banking. National Banking Review, 5, 131-139.
8. Benston, G.J. (1965). Branch banking and economies of scale. Journal of Finance, 20(2), 312-331.
9. Berger, A.N. (2007). International comparisons of banking efficiency. Financial Markets, Institutions & Instruments, 16(3), 119-144.
10. Berger, A.N., & Humphrey, D.B. (1997). Efficiency of financial institutions: International survey and directions for future research. European Journal of Operational Research, 98(2), 175-212.
11. Bhattacharyya, A., Lovell, C.A.K., & Sahay, P. (1997). The impact of liberalization on the productive efficiency of Indian commercial banks. European Journal of Operational Research, 98(2), 332-345.
12. Bhaumik, S.K., & Dimova, R. (2004). How important is ownership in a market with level playing field?: The Indian banking sector revisited. Journal of Comparative Economics, 32(1), 165-180.
13. Bhide, M.G., Prasad, A., & Ghosh, S. (2002). Banking sector reforms: A critical overview. Economic and Political Weekly, 37(5), 399-408.
14. Casu, B. (2002). A comparative study of the cost efficiency of Italian bank conglomerates. Managerial Finance, 28(2), 3-23.
15. Casu, B., & Molyneux, P. (2003). A comparative study of efficiency in European banking. Applied Economics, 35(17), 1865-1876.
16. Chang, D., & Lo, L. (2005). Measuring the relative efficiency of a firm's ability to achieve organizational benefits after ISO certification. Total Quality Management, 16(1), 57-69.
17. Charnes, A., Cooper, W.W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429-444.
18. Das, A. (1997). Technical, allocative and scale efficiency of public sector banks in India. RBI Occasional Papers, 18(2/3), 279-301.
19. Das, A. (1999). Profitability of public sector banks: A decomposition model. RBI Occasional Papers, 20(1), 55-77.
20. Das, A., Nag, A., & Ray, S.C. (2004). Liberalization, ownership and efficiency in Indian banking: A nonparametric approach (Working paper series). Storss, CT: Department of Economics, University of Connecticut. Retrieved from http://digitalcommons.uconn.edu/cgi/viewcontent.cgi?article=1142&context=econ_wpapers
21. Debasish, S.S. (2006). Efficiency performance in Indian banking: Use of data envelopment analysis. Global Business Review, 7(2), 325-333.
22. Färe, R. (1988). Fundamentals of production theory. Berlin, Germany: Springer-Verlag.
23. Färe, R., Grosskopf, S., Norris, M., & Zhang, Z. (1994). Productivity growth, technical progress, and efficiency change in industrial countries. American Economic Review, 84(1), 66-83.
24. Farrell, M.J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society, 120(3), 253-281.
25. Fethi, D.M., & Pasiouras, F. (2010). Assessing bank efficiency and performance with operational research and artificial intelligent techniques: A survey. European Journal of Operational Research, 204(2), 189-198.
26. Ghosh, S. (2009). Charter value and risk-taking: Evidence from Indian banks. Journal of the Asia Pacific Economy, 14(3), 270-286.
27. Government of India. (1991). Report of the committee on the financial system (Chairman: M. Narasimham). Mumbai: Reserve Bank of India.
28. Gupta, O.K., Doshit, Y., & Chinubhai, A. (2008). Dynamics of productive efficiency of Indian banks. International Journal of Operations Research, 5(2), 78-90.
29. Holló, D., & Nagy, M. (2006). Bank efficiency in enlarged European Union (Working Paper Series, BIS Paper No. 28) (pp. 217-235). Retrieved from http://www.bis.org/publ/bppdf/bispap28m.pdf.
30. Humphrey, D.B. (1985). Costs and scale economies in bank intermediation. In R.C. Aspinwall & R.A. Eisenbeis (Eds.), Handbook for banking strategy (pp. 745-783). New York: John Wiley and Sons.
31. Kao, C., & Liu, S. (2004). Predicting bank performance with financial forecasts: A case of Taiwan commercial banks. Journal of Banking & Finance, 28(10), 2353-2368.
32. Kumar, M., & Basu, P. (2004). Decomposition of productivity growth using data envelopment analysis: A case study of Indian industrial machinery. In B. Nagarjuna (Ed.), Economic reforms and perspectives (pp. 345-370). New Delhi: Serial Publication.
33. Kumar, M., & Charles, V. (2009). Productivity growth as the indicator of shareholders' wealth maximization: An empirical investigation. Journal of Centrum Cathedra, 2(1), 73-85.
34. Kumar, S., & Gulati, R. (2008). Evaluation of technical efficiency and ranking of public sector banks in India: An analysis from cross-sectional perspective. International Journal of Productivity and Performance Management, 57(7), 540-568.
35. Little, I.M.D., & Joshi, V.J. (1994). India: Macroeconomics and political economy, 1964-1991. Washington, DC: World Bank.
36. Malhotra, P., & Singh, B. (2009). The impact of internet banking on bank performance and risk: The Indian experience. Eurasian Journal of Business and Economics, 2(4), 43-62.
37. Mohan, R. (2004). Financial sector reforms in India: Policies and performance analysis, Lecture Delivered at the IMF. Washington, DC.
38. Nunamaker, T.R. (1985). Using data envelopment analysis to measure the efficiency of non-profit organizations: A critical evaluation. Managerial and Decision Economics, 6(1), 50-58.
39. Pradhan, J.P. (2002). FDI spillovers and local productivity growth: Evidence from Indian pharmaceutical industry. Artha Vijnana, XLIV(3/4), 317-332.
40. Prasad, A., & Ghosh, S. (2007). Competition in Indian banking: An empirical evaluation. South Asia Economics Journal, 8(2), 265-284.
41. Raab, R., & Lichty, R. (2002). Identifying sub-areas that comprise a greater metropolitian area: The criterion of country relative efficiency. Journal of Regional Science, 42(3), 579-594.
42. Ram Mohan, T.T. (2002). Deregulation and performance of public sector banks. Economic and Political Weekly, 37(5), 393-397.
43. Ram Mohan, T.T. (2003). Long-run performance of public and private sector bank stocks. Economic and Political Weekly, 38(8), 785-788.
44. Ram Mohan, T.T. (2005). Privatization in India: Challenging economic orthodoxy. New York: Taylor & Francis Group.
45. Ram Mohan, T.T., & Ray, S.C. (2004). Productivity growth and efficiency in Indian banking: A comparison of public, private, and foreign banks (Economics Working Paper). Storrs, CT: Department of Economics, University of Connecticut. Retrieved from http://digitalcommons.uconn.edu/cgi/viewcontent.cgi?article=1140&context=econ_wpapers
46. Reddy, Y.V. (1998). Financial sector reform: Review and prospects, Address delivered at the Conference on Growth, governance and empowerment: The future of Indian economy, University of California at Santa Cruz, USA. Retrieved from www.rbi.org.in
47. Reddy, Y.V. (2006). Reforming India's financial sector: Changing dimensions and emerging issues. Address Delivered at the International Center for Monetary and Banking Studies, Geneva.
48. Reserve Bank of India. (various years, a). Report on trend and progress of banking in India. Government of India.
49. Reserve Bank of India. (various years, b). Statistical tables relating to banks in India. Government of India.
50. Saha, A., & Ravisankar, T.S. (2000). Rating of Indian commercial banks: A DEA approach. European Journal of Operational Research, 124(1), 187-203.
51. Sahoo, B.K., Sengupta, J.K., & Mandal, A. (2007). Productive performance evaluation of the banking sector in India using data envelopment analysis. International Journal of Operations Research, 4(2), 63-79.
52. Sathye, M. (2003). Efficiency of banks in a developing economy: The case of India. European Journal of Operational Research, 148(3), 662-671.
53. Sealey, C.W., Jr., & Lindley, J.T. (1977). Inputs, outputs, and a theory of production and cost at depository financial institutions. Journal of Finance, 32(4), 1251-1266.
54. Sharma, S. (2007). Liberalization and productivity growth: A case of Indian cement industry. International Journal of Productivity and Quality Management, 2(3), 307-321.
55. Shephard, R.W. (1970). Theory of cost and production functions. Princeton, NJ: Princeton University Press.
56. Yeh, Q.J. (1996). The application of data envelopment analysis in conjunction with financial ratios for bank performance evaluation. Journal of the Operational Research Society, 47(8), 980-988.
57. Zhang, Y., & Bartels, R. (1998). The effect of sample size on the mean efficiency in DEA with an application to electricity distribution in Australia, Sweden and New Zealand. The Journal of Productivity Analysis, 9(3), 205-232.
58. Zhao, T., Casu, B., & Ferrari, A. (2008). Deregulation and productivity growth: A study of the Indian commercial banking industry. International Journal of Business Performance Management, 10(4), 318-343.
59. Zhu, J. (2002). Quantitative models for performance evaluation and benchmarking: Data envelopment analysis with spreadsheets and DEA excel solver. Boston: Kluwer Academic Publishers.