A Comparison of the Performance of Commercial Banks: DEA Evidence for India

--Ram Pratap Sinha

In the last two decades, numerous studies have used parametric and non-parametric techniques to estimate commercial bank productivity and efficiency in the Indian context. However, none of them has considered undesirable outputs in their analytical framework. The present paper makes an attempt to fill this gap and evaluates the performance of 49 Indian commercial banks for the period 2006-07 to 2010-11 using Seiford and Joe Zhu (2002) approach, which is essentially a variant of the popular Banker-Charnes-Cooper (BCC) model.

© 2013 IUP. All Rights Reserved.

Determinants of Cost Efficiency of Commercial Banks in India: DEA Evidence

--Dalip Raina and Supran Kumar Sharma

This paper examines the cost efficiency of Indian commercial banks using Data Envelopment Analysis (DEA) and specifically incorporating interest and non-interest income measures in the estimation. In consistent with the earlier findings, the results show that there is substantial inefficiency among the commercial banks in India over the period of the study (2005-06 to 2010-11). This result suggests that the observed cost inefficiency in the Indian banking industry is primarily due to the regulatory environment in which public sector banks are operating rather than the managerial problems in using the financial resources. The results further signify that the level of competitive practices and technology in the Indian banking industry during the post-reforms period served as a catalyst in improving the level of cost efficiency.

© 2013 IUP. All Rights Reserved.

Performance Appraisal of Indian Banks Using CAMELS Rating

--Mihir Dash and Annyesha Das

There has been some improvement in the Indian banking sector after the reforms, and CAMELS framework is a natural framework to analyze this improvement. The present study compares the performance of public sector banks with private/foreign banks under the CAMELS framework. The data used for the study were the audited financial statements of a sample of 58 Indian banks for the period 2003-08. The results of the study show that private/foreign banks fared better than public sector banks on most of the CAMELS factors in the study period. The two contributing factors for the better performance of private/foreign banks were Management Soundness and Earnings and Profitability.

© 2013 IUP. All Rights Reserved.

Role of HR Practices and KM Tools in Knowledge-Sharing Behavior of Internal Customers at Commercial Banks in Delhi

--Karishma Gulati and Shikha N Khera

This research work examined various aspects of Human Resource (HR) practices of Delhi-based banks in the context of Knowledge Management (KM). Along with it, KM tools such as after-action reports, brainstorming and group discussion, artificial intelligence, database and web-base, and expert system that are perceived to ignite a spark in the employees to share their knowledge in the organization were also examined. The current research is an empirical analysis of responses obtained through a structured questionnaire dealing with HR practices and KM tools from 84 respondents of 13 commercial banks (4-Private, 5-Public, 4-Foreign). The analysis of data indicates that out of 11 HR practices studied, only 4 focused on the knowledge-sharing behavior of employees and KM tools were found complementing these practices.

© 2013 IUP. All Rights Reserved.

The Impact of Electronic Banking on Banking Transactions: A Cost-Benefit Analysis

--Rimpi Kaur

Banks are shifting from paper-based to electronic transactions. As of today, 50% of total transactions are electronic-based, and this share is increasing at an incredible rate. Hence, there is a need to assess the effects of electronic banking on business operations of banks. In this light, the present paper analyzes the computerization, expenditure on electronic banking and cost-benefit analysis of paper-based and electronic transactions. The paper notes that there is a swing from paper-based transactions to electronic transactions, with electronic transactions escalating drastically and earning business value at a triple rate. Per transaction value is 168 times per transaction cost which shows sound returns. The paper also evaluates the effect of transactions on cost and value through correlation-coefficient and concludes that electronic banking has positive and significant impact on cost and value of transactions.

© 2013 IUP. All Rights Reserved.