Journal of Income & Wealth (The)
  • Year: 2017
  • Volume: 39
  • Issue: 1

Banks in the liberalisation Era: A study based on Non-Parametric super efficiency with panel tobit

  • Author:
  • Atanu Sengupta1, DE Sanjoy2,
  • Total Page Count: 8
  • Page Number: 51 to 58

1Professor, Department of Economics, Burdwan University, Burdwan, West Bengal, India, sengupta_atanu@yahoo.com

2Research Scholar, Department of Economics, Burdwan University, Burdwan, West Bengal, India

*Corresponding author email id: sanjoyde2000@gmail.com,

JEL Classification Codes: G21C1, C14, C24

Abstract

Banks play a crucial role in channelisation of untapped saving into productive uses. In this paper, we have made an attempt to judge the performance of the banking sector in India since the 1990s. For the period 1992–2012, we have found the new-age private-sector banks to be the most efficient, followed by the nationalised banks, foreign banks and SBI and associates. Old privatesector banks emerged as the least efficient category. Again, to provide ranks among the efficient banks, we have employed the super-efficiency model. Application of this advanced method of efficiency calculation has helped us analyse the performance of banks at a more micro level

Keywords

Bank efficiency, DEA, Super efficiency, Panel Tobit, Fixed-effect model, Random-effect model, Decision making units