Performance and Efficiency: A Comparative Study of Public and Private Sector Banks in India by Stochastic Frontier Analysis

Performance and Efficiency: A Comparative Study of Public and Private Sector Banks in India by Stochastic Frontier Analysis

Registration ID: IJNRD_184249

Published ID: IJNRD2211197

DOI: Click Here to Get

Anik Sharma

Stochastic frontier analysis, Translog production function, Cobb-Douglas production function, Total factor productivity, Scale efficiency, Technical efficiency, Technical change, Time-varying decay inefficiency model, Public sector banks, Private sector banks

In the 21st-century banking sector has become an integral organ of economic growth and development. The banking sector helps financial stability and maintains the pace of smooth economic growth. In India, after independence, there was the nationalization of banks and the government kept full control of formal banking till 1990 by the implementation of economic reform the government has given space to private and foreign banks. For the last decade, there has been debate on the performance comparability of public and private sector banks as per the government of India public sector banks are not performing well compared to the private sector banks. The comparison criteria are mainly Non-Performing Assets (NPA). Public sector banks' NPA has indeed shown significant growth as compared to private sector bank NPA. For measuring banking performance NPA is a necessary but not sufficient indicator to judge the bank’s performance. In this paper, we have examined the comparative performance of public and private sector banks in India through a stochastic frontier approach where we have estimated the total factor productivity, technical progress, scale efficiency, technical efficiency, and econometric analysis. In the production frontier, we have estimated both the used production function Translog production function(TLPF) and Cobb-Douglas production function(CDPF) in each estimation across public and private sector banks. We have used the total earnings of banks as an output variable and also taken two input variables interest extended and operating expenses where formal is a proxy for capital and the latter is a proxy for labour.

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"Performance and Efficiency: A Comparative Study of Public and Private Sector Banks in India by Stochastic Frontier Analysis", IJNRD - INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT (www.IJNRD.org), ISSN:2456-4184, Vol.7, Issue 11, page no.b801-b825, November-2022, Available :https://ijnrd.org/papers/IJNRD2211197.pdf

Volume 7 Issue 11, November-2022

Pages : b801-b825

Paper Reg. ID: IJNRD_184249

Published Paper Id: IJNRD2211197

Downloads: 000121336

Research Area: Social Science and Humanities 

Country: New Delhi, New Delhi, India

Published Paper PDF: https://ijnrd.org/papers/IJNRD2211197.pdf

Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2211197

Journal Name: INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT(IJNRD)

ISSN: 2456-4184 | IMPACT FACTOR: 8.76 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.76 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

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This work is licensed under a Creative Commons Attribution 4.0 International License and The Open Definition

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