This paper compares the efficiency of Indian banking industry over two time periods, 1999–2003 and 2004–2008. Ownership effects in determining the efficiency are also compared in this paper. A Cobb–Douglas stochastic frontier model is adopted in order to estimate the bank...

This paper examines two important issues related to bank mergers in India. First, we estimate potential economic gains of state-owned banks from consolidation. Scale economies, returns to scale and profit efficiency of state-owned banks during 1986 to 2007 are estimated based on stochastic...