PARAMETERS OF EFFICIENCY OF INDIAN BANKING SYSTEM

The faster pace of globalization and liberalization particularly since 1991 followed by a greater emphasis on globalization in 2000 became a significant factor in the rapid growth of the banking sector in the Indian economy. Therefore in today''s financial world only competitive banks will survive in the financial market. As a result the government and the country''s central bank have been paying close attention to bank consolidation. However there are a few practical issues that are preventing this process from moving forward. In this book an attempt is made to examine the efficiency of public sector banks using the scaling technique as recommended efficiency indicators of banks while keeping in mind the bank''s size. During the investigation of public sector banks the study found that just a few banks are on the verge of becoming very efficient while the majority are operating at a decent level of efficiency.