Productivity and Efficiency of Private Sector Banks after Global Financial Crisis: Evidence from India

A productive and efficient banking industry plays vital role in financial intermediation for accelerating the economic growth. In recent years, the competition among public, private and foreign sector banks has increased tremendously in India. This paper aims to study the change in productivity and efficiency of private sector banks (PVSBs) in India after financial crisis 2008. Non-parametric DEA approach used here to study the productivity and efficiency change of 20 PVSBs operating in India. The results show that there is a wide variation of productivity and efficiency change among PVSBs and few PVSBs are suffering from deterioration of efficiency which requires special policy approach to improve upon it. The paper has also highlighted the sources of inefficiency and their remedial measures.