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

K. Hafsal · S. Raja Sethu Durai

34 citations0/0 files storedFuture Business Journal

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Efficiency Analysis Using DEA Banking stability, regulation, efficiency Banking Sector Performance and Management

Abstract

Abstract 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.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 34 citations exist upstream.

References

1997Inside the black box: What explains differences in the efficiencies of financial institutions?1989Multilateral Productivity Comparisons When Some Outputs are Undesirable: A Nonparametric Approach 2007Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan 1997The impact of liberalization on the productive efficiency of Indian commercial banks 2011The technical efficiency of the Japanese banks: Non-radial directional performance measurement with undesirable output 2013Indian bank efficiency and productivity changes with undesirable outputs: A disaggregated approach 2009Distribution of cost and profit efficiency: Evidence from Indian banking 2004Efficiency of Indian commercial banks during the reform period

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.