TY - JOUR
T1 - Deregulation, ownership and profit performance of banks: evidence from India
AU - Sensarma, R.
N1 - Original article can be found at: http://www.informaworld.com/smpp/title~content=t713684415~db=all Copyright Informa / Taylor and Francis
PY - 2008
Y1 - 2008
N2 - This article studies the effects of deregulation on the banking industry in an emerging economy using profit-based measures of performance. Using panel data of 83 Indian banks belonging to different ownership groups for the period 1986 to 2005, we find that profit efficiency and productivity declined following deregulation. While public sector banks performed better than private banks in the pre-deregulation period, there was no difference in their performances after deregulation. Foreign and new private banks turned out to have the highest levels of profit productivity. Our results are in contrast with the findings of previous studies that have found significant improvements in efficiency and productivity of Indian banks using cost-based measures of performance.
AB - This article studies the effects of deregulation on the banking industry in an emerging economy using profit-based measures of performance. Using panel data of 83 Indian banks belonging to different ownership groups for the period 1986 to 2005, we find that profit efficiency and productivity declined following deregulation. While public sector banks performed better than private banks in the pre-deregulation period, there was no difference in their performances after deregulation. Foreign and new private banks turned out to have the highest levels of profit productivity. Our results are in contrast with the findings of previous studies that have found significant improvements in efficiency and productivity of Indian banks using cost-based measures of performance.
U2 - 10.1080/09603100701720385
DO - 10.1080/09603100701720385
M3 - Article
SN - 0960-3107
VL - 18
SP - 1581
EP - 1595
JO - Applied Financial Economics
JF - Applied Financial Economics
IS - 19
ER -