Productivity and Efficiency of Public Sector Banks in India after the Global Financial Crisis

A productive and efficient banking industry plays a vital role in financial intermediation for accelerating the economic growth. In recent years, the competition among public sector, private sector and foreign banks has increased tremendously in India. This paper aims to study the change in the productivity and efficiency of Public Sector Banks (PSBs) in India after the financial crisis of 2008. Non-parametric Data Envelopment Analysis (DEA) approach is used to study the productivity and efficiency change of 26 PSBs operating in India. The results show that there is a wide variation of productivity and efficiency change among PSBs, and a few PSBs are suffering from deterioration of efficiency, which requires special remedial policy approach