Efficiency
of Urban Cooperative Banks of Maharashtra: A DEA Analysis
-- Geeta Sharma and Ganesh Kawadia
The
cooperative banking sector in India has received a series of shocks in recent
years, resulting in a significant number of bank failures and upsurge in bank
merger activities, both voluntary and arranged by RBI. The major legislative and
regulatory changes raise a number of important questions about the sector, and
issues of bank efficiency become more important as inefficient banks may not survive
long. Survival and success in competitive markets demand performance through continuous
improvement and learning. Against this backdrop, this paper analyzes and measures
the performance and efficiency of the Urban Cooperative Banks (UCBs) of Maharashtra,
using Data Envelopment Analysis (DEA), a model that helps to determine the relative
efficiency among competing banks, on the basis of their numerical efficiency score.
The author also attempts to identify and examine the relationship between size
and efficiency of UCBs. However, the scope of efficiency is limited to technical
efficiency only. ©
2006 IUP . All Rights Reserved.
Spread
Efficiency of Indian
Commercial Banks
-- Ram
Pratap Sinha
This
paper makes a comparative assessment of public and private sector bank intermediation
cost efficiency during the reform period, taking spread or net interest margin
as the output indicator. The years covered in the study are 1996-97, 1998-99,
2000-01 and 2002-03. The study concentrates on 20 public and 10 Indian private
sector banks. The paper makes use of two non-parametric methods: the Free Disposal
Hull (FDH) approach and the Data Envelopment approach for construction of the
cost frontier for measurement of efficiency. In the FDH approach, the author takes
segments of the cost frontier as the benchmark. In the DEA approach, he takes
a linear version of the entire frontier as the benchmark. As per the FDH results,
the observed public sector commercial banks exhibit higher mean efficiency scores
(when the year-wise figures are averaged) than the observed private sector banks.
In terms of DEA, however, the observed private sector commercial banks have higher
mean cost and higher technical and cost efficiencies than the observed public
sector commercial banks. The author conducts a test of significance to examine
if the mean cost efficiencies of the two bank groups are significantly different
across bank groups. The results are positive for both FDH and DEA. ©
2006 IUP . All Rights Reserved.
Productivity
and Profitability of
Select Public Sector and Private Sector Banks in India: An Empirical Analysis
-- Santi
Gopal Maji and Soma Dey
The
process of globalization and liberalization has strongly influenced the Indian
banking sector. The ongoing reforms in the banking sector, with their thrust on
transparency, efficiency and profitability, have forced the Indian banking sector
to adopt suitable strategies with focus on productivity, profitability, competitiveness,
and sustainability. Keeping a decade of reforms in the financial sector in the
background, this study empirically investigates the productivity and profitability
of five large Indian public sector banks and five large Indian private sector
banks during the period 1996-97 to 2003-04. ©
2006 IUP . All Rights Reserved.
A
Fundamental Analysis of Indian Banking Industry
-- P
Janaki Ramudu and S Durga Rao
Investment
decisions, in all sectors, have been gaining paramount importance, warranting
the investors to be continuously cautious of risk and return involved in the same.
The faculty `investment analysis' calls for planned and meaningful appraisal of
both internal and external factors affecting the returns. Ever since Indian economy
opened its doors to MNCs, the Indian banking sector has been witnessing bizarre
changes in terms of new products and services and stiff competition as well. The
sort of IPOs that have been taking place in banking sector are amazing. In the
light of these recent developments, a careful analysis of the profitability of
Indian banking sector is inevitable. The present study attempts to analyze the
profitability of the three major banks in India: SBI, ICICI, and HDFC. The variables
taken for the study are Operating Profit Margin (OPM), Net Profit Margin (NPM),
Return on Equity (RoE), Earnings per Share (EPS), Price Earnings Ratio (PER),
Dividends per Share (DPS), and Dividends Payout Ratio (DPR). The study brings
out the comparative efficiency of SBI, ICICI, and HDFC. ©
2006 IUP . All Rights Reserved. | 
