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Relevance of Public Sector Banks in India: Productivity Efficiency of Commercial Banks

Journal of Commerce and Accounting Research

Volume 1 Issue 2

Published: 2012
Author(s) Name: Daniel Lazar, Majid Shaban
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Abstract

This paper attempts to examine the productive efficiency of commercial banks in India, by using the Data Envelopment Analysis (DEA) technique for the sample of 70 commercial banks viz., (26 public banks, 19 private banks and 25 foreign banks). The study is conducted for the period of 10 years i.e. from 1999 to 2009. It is concluded that the public sector banks are on the efficiency frontier but the notable result is that the public sector banks are followed by foreign banks which in turn is followed by private banks.

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