Efficiency parameters of commercial banks in India - An empirical study

Banking sector reforms in India has introduced the concept of efficiency and productivity on a larger scale than before. Banks now a day are mainly worried and concerned about their performance on the parameters that determine their profitability and only those bank groups are considered as successful which are capable in accelerating their pace of profit making. For this purpose a comparative study is done between public, private and foreign sector bank group w.r.t. their total income, total expenditure, net profits, business per employee and profit per employee. t-Ratio was computed to see significant difference on selected parameters between different bank groups. The study concludes that there is significant difference exists on four out of five selected parameters except profit per employee between public sector and private sector bank group. There is significant difference on all the selected parameters between public and foreign sector bank group. There is also significant difference exists on all the selected parameters between private and foreign sector bank group.