Skip navigation
Please use this identifier to cite or link to this item: http://repository.iitr.ac.in/handle/123456789/8802
Title: Impact of non-traditional activities on the efficiency of Indian banks: An empirical investigation
Authors: Gulati, Rachita
Kumar S.
Published in: Macroeconomics and Finance in Emerging Market Economies
Abstract: This article investigates the relevance of the inclusion of non-traditional activities in the specification of banks' output on the efficiency of Indian banks. The results indicate that the exclusion of non-traditional activities not only understates the cost, technical and allocative efficiencies of individual banks but also affects the ranking of ownership groups in the industry. In particular, when a proxy for non-traditional activities is accounted for in the output specification, the foreign banks appear to be more efficient than public and private sector banks. Overall, the results reinforce the prevailing view in the extant literature that the exclusion of non-traditional activities causes misspecification of banks' output, and may distort the efficiency estimates. © 2011 Taylor & Francis.
Citation: Macroeconomics and Finance in Emerging Market Economies (2011), 4(1): 125-166
URI: https://doi.org/10.1080/17520843.2010.530939
http://repository.iitr.ac.in/handle/123456789/8802
Issue Date: 2011
Keywords: Allocative efficiency
Cost efficiency
Data envelopment analysis
Indian banks
Non-traditional activities
Technical efficiency
ISSN: 17520843
Author Scopus IDs: 26221190300
57206762527
Author Affiliations: Gulati, R., Punjab School of Economics, Guru Nanak Dev University, Punjab, India
Kumar, S., Punjab School of Economics, Guru Nanak Dev University, Punjab, India
Corresponding Author: Kumar, S.; Punjab School of Economics, Guru Nanak Dev University, Punjab, India; email: sunil12eco@yahoo.com
Appears in Collections:Journal Publications [HS]

Files in This Item:
There are no files associated with this item.
Show full item record


Items in Repository are protected by copyright, with all rights reserved, unless otherwise indicated.