Ownership financial performance and efficiency a study of selected commercial banks in India 20072016

Abstract

The Indian commercial banks are playing major role in the mobilization of savings, augmenting capital formation, facilitating investments in all sectors of the economy and promoting economic development of the country. The Indian banking structure which was evolved over many decades have witnessed spectacular structural changes since economic reform policies of 1991 mostly due to the introduction of banking and financial sector reforms and implementation of BASEL norms. The landscape of Indian commercial banking is shaped by 4 types of ownership design such as SBI group, PSB, private banks and foreign banks. The ownership structure and performance of commercial banks in India is gaining importance due to the ongoing debate over the consolidation of banking structure in India. Many studies have found that public Sector banks, performed better than private banks whereas many other studies found superior performance by private and foreign banks than PSBs and SBI group. Thus the extant literature on the financial performance and efficiency differentials of the commercial banks in India shows often contracting and the inconclusive link between ownership financial performance and efficiency. Hence this study envisages to reinvent the relationship between financial performance and efficiency differential across different ownership groups such as. newline