Impact of FDI on the Operational Efficiency of South Indian Bank

This paper mainly focuses on the study of importance of Foreign Direct Investment (FDI) in banking sector, role of FDI in South Indian Bank (SIB) and its operational efficiency as a result of FDI. The analysis is done on the basis of secondary data. The operational efficiency of the bank is studied on the basis of productivity and profitability. The statistical tools used for testing of hypothesis are Regression analysis, Anova and Coefficients of Variance. This study found that the productivity and profitability of South Indian Bank is directly related to the inflow of FDI into the bank. More liberalisation of rules and regulations of banking sector would bring better growth in this sector like some other sectors, such as Construction and Development, Telecom Sector, Automobile Industry etc, who enjoys hundred percentage FDI.