| dc.description.abstract | The financial system refers to the whole gamut of institutional arrangements
that help to mobilise the financial surplus of an economy and transfer it to areas of
financial deficit. India has a well-structured financial system. It has an amazing
network of banks, other financial and investment institutions, and different financial
instruments that all work in a well-developed capital and money market. The Indian
financial system is dominated by banks. Over sixty percent of the entire assets of the
financial system are held by commercial banks. Commercial banks are the heart of
our financial system. They keep the deposits of millions of individuals, governments,
and companies. Through their lending and investing activities, they make funds
available to borrowers, such as individuals, businesses, and the government. Hence,
the present study analysed the growth, profitability, efficiency, and productivity of
commercial banks from 1992–93 to 2020–21. In addition to this, factors determining
efficiency and productivity were analysed in the present study. For comparing the
performance among the different groups of banks, commercial banks are classified
into public sector banks, private sector banks, and foreign banks. Mean, compound
annual growth rate, ratios, Data Envelopment Analysis, Malmquist productivity
index, Kruskal-Wallis H test, ANOVA, panel tobit regression, and fixed and random
effect models were employed for the analysis. The study revealed that none of the
groups of banks exhibits consistent performance in the performance indicators
selected in the study. In the growth analysis, the growth rate of private sector banks is
higher than that of other groups of banks. The share of each bank group for each
variable on the total of the variables indicates that public sector banks are still holding
the major portion of the business; however, the trend of the percentage share of private
sector banks has improved over the study period, while the share of public sector
banks has decreased. The profitability and efficiency analysis found that the
performance of foreign banks was better than that of domestic banks. Productivity
analysis indicates that there is productivity progress among all commercial banks and
public sector commercial banks, whereas private sector banks and foreign banks have
experienced a decline in productivity. The study concluded that each group of
commercial banks is performing better as per one performance indicator or another.
None of the bank groups is performing better according to all the selected performance
indicators. | en_US |
