Efficiency of Indian banks with non-performing assets: evidence from two-stage network DEA

被引：0
作者：
K. Hafsal
Anandarao Suvvari
S. Raja Sethu Durai
机构：
[1] University of Hyderabad,School of Economics
[2] Central University of Andhra Pradesh,undefined
来源：
Future Business Journal | / 6卷
关键词：
General two-stage network DEA; Bank efficiency; India; Non-performing assets; G21; P42; C14; C44;
D O I：
暂无
中图分类号：
学科分类号：
摘要：
This paper addresses the concerns regarding the sustainability of the banking sector in India prompted by the recent unintended high level of non-performing assets (NPAs). It uncovers the linkage between NPAs and banking efficiency by integrating NPAs into the measurement of bank efficiency to provide a holistic efficiency profile of the Indian banking sector. We apply the general two-stage data envelopment analysis of Kao [16] by incorporating NPAs as an exogenous output from the first stage, and the empirical results identify an efficiency gap of 16.2% due to NPAs in the Indian banking sector for the year 2016. Further, it also documents that the efficiency gap/loss is increasing over the years and differs according to the shareholding pattern of the banks.
引用
收藏
相关论文
共 49 条
[1]  
Akther S(2013)Estimating two-stage network slacks-based inefficiency: an application to Bangladesh banking Omega 41 88-96
[2]  
Fukuyama H(2012)The technical efficiency of the Japanese banks: non-radial directional performance measurement with undesirable output Omega 40 1-8
[3]  
Weber WL(2018)Analysis of NPAs of Indian banks: using a comprehensive framework of 31 financial ratios IIMB Manag Rev 30 191-284
[4]  
Barros CP(1997)Inside the black box: What explains differences in the efficiencies of financial institutions? J Bank Finance 21 895-947
[5]  
Managi S(1997)The impact of liberalization on the productive efficiency of Indian commercial banks Eur J Oper Res 98 332-345
[6]  
Matousek R(1999)The nonparametric risk-adjusted efficiency measurement: an application to Taiwan’s major rural financial intermediaries Am J Agric Econ 81 902-913
[7]  
Bawa JK(2004)Efficiency of Indian commercial banks during the reform period Appl Financ Econ 14 681-686
[8]  
Goyal V(2003)Institutional investors, financial market efficiency, and financial stability EIB Pap 8 77-107
[9]  
Mitra SK(1989)Multilateral productivity comparisons when some outputs are undesirable: a nonparametric approach Rev Econ Stat 71 90-98
[10]  
Banu S(2014)Indian bank efficiency and productivity changes with undesirable outputs: a disaggregated approach J Bank Finance 38 41-50
12345