Towards a better efficiency analysis
The performance of the prominent banks, both in the public and the private sectors, has become more market driven with the growing emphasis on better performance. Scores of studies have attempted to evaluate the overall performance of the banking sector by applying the profitability criterion. Most of the studies, done so far, on the banking sector have analyzed the absolute level of productivity by after analyzing information from the time series data.
Some of the studies have undertaken an analysis of relative productivity. But most of this analysis considered only the overall economic efficiency. However, the studies that went into a further disaggregated analysis of efficiency and its components are few in number. A very few of these studies have evaluated the overall efficiency and its components, that is:
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