Abstract
This paper is an attempt to examine the total productivity growth of foreign banks for the period 2002-2003 to 2013-2014. Data of ten major foreign sector banks for twelve years were used for the analysis and interpretation. Malmquist Productivity Index and Input oriented CRS data envelopment analysis are being used to measure the productivity of these banks over the years. Along with the productivity of foreign sector banks, their performances were also determined through ratios. The results show that the foreign sector banks has obtained an excellent mean TFP of 1.06 and nine foreign sector banks has obtained an eligible score of one which depicts that foreign sector banks are doing well in the country. The excellent performance of foreign sector banks in the banking industry is further substantiated with the ratios. The study has revealed that by enlarging the scope of foreign banks will obviously bring growth, development and technological advancement in the Indian banking Sector. The Kelaniya Journal of Management, Vol. 4(1); 2015: 50-64
Highlights
The banking sector reforms in India were stimulated by the report of the Committee on financial system, popularly known as Narasimham Committee (RBI, 1991)
The analysis part of the study begins with determining the productivity and technical efficiency of foreign sector banks
The results indicate that the top performer of foreign sector banks in terms of total factor productivity growth is Bank of Tokyo
Summary
The banking sector reforms in India were stimulated by the report of the Committee on financial system, popularly known as Narasimham Committee (RBI, 1991). This committee, which submitted its report in 1991, suggested various measures to improve the efficiency and health of banking sector by making it more competitive and vibrant (Ahluwalia, 2002). It affected the productivity, profitability and efficiency of the banks to a large extent (Mohan, 2005).
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