ASSESSING THE EFFICIENCY OF URBAN CO-OPERATIVE BANKS IN INDIA
DOI:
https://doi.org/10.29015/cerem.550Słowa kluczowe:
Urban Co-operative Banks, EfficiencyAbstrakt
Aim: Urban Co-operative Banks are a small segment albeit significant constituent in the multi-stage credit delivery mechanism of the banking sector in India. These banks have an organisational, managerial and regulatory structure different from commercial banks. It is, therefore, of interest to study the efficiency with which these banks perform their core banking and off balance sheet activities. This paper focuses on the measurement of efficiency in the conduct of core banking and off balance sheet activities for the period 2013-14 to 2015-16.
Design / Research methods: The main idea is to employ the parametric Stochastic Frontier Analysis and the non-parametric Data Envelopment Analysis to measure the efficiency of Urban Co-operative Banks. We estimate two models for both the frontier methods, Model A examines the efficiency in core banking activity and Model B for the off balance sheet activities. The analysis of super efficiency undertaken helps identify the most efficient bank while the quartile analysis provides an insight into the distribution of efficiency (for both Models A and B). A Tobit model (for both Models A and B) has also been estimated to identify the determinants of efficiency.
Conclusions / findings: We find that Urban Co-operative banks display a higher mean efficiency in core banking activities (Model A) as compared to the off-balance sheet activities (Model B) and this finding has been reiterated by the frequency distribution of efficiency for both the frontier methods. The difference is the mean efficiency obtained for Models A and B is much wider under the stochastic frontier analysis. The analysis of super efficiency points out that of the three banks efficient under Model A and five efficient banks under Model only one bank is common to both the models. The quartile analysis highlights that 38.9 percent of the UCBs are ranked in the lower two quartiles of efficiency. The Tobit regression model has identified deposits and loans disbursed as significant determinants of efficiency for both models.
Originality / value of the article: This study contributes significantly to the existent gap in the literature on efficiency measurement of banks in India by focussing on efficiency measurement among urban co-operative banks who play an important role in urban financial inclusion.
Implications of the research: This study is the only study that has measured the efficiency in operations of Urban Co-operative Banks and can hence provide an insight into the operations of these banks. It can also help individual banks in taking appropriate measures to improve efficiency.
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Autor przenosi nieodpłatnie na Wyższą Szkołę Bankową we Wrocławiu , bez ograniczeń terytorialnych, majątkowe prawa autorskie do tego utworu w rozumieniu ustawy z dnia 4 lutego 1994 roku o prawie autorskim i prawach pokrewnych ( Dz.U. 1994, Nr 24, poz. 83 ze zm. )na zasadzie wyłączności, tj. prawo do:
a) wyłącznego używania i wykorzystania utworu w dowolnej działalności przez Wyższą Szkołę Bankową we Wrocławiu, w szczególności w działalność Biblioteki Cyfrowej uruchomionej przez Wyższą Szkołę Bankową we Wrocławiu
b) wytwarzania, utrwalania i zwielokrotniania egzemplarzy utworów wszelkimi technikami, w tym techniką drukarską, reprograficzną, zapisu magnetycznego oraz techniką cyfrową, w szczególności ich zwielokrotniania poprzez dokonywanie zapisów na płytach typu CD,
c) zamieszczenia wybranych fragmentów utworu w celach promocyjnych w publikacjach, materiałach promocyjnych, w sieci Internet oraz sieciach wewnętrznych typu Intranet Wyższej Szkoły Bankowej we Wrocławiu,
d) wprowadzania utworu do pamięci komputera Wyższej Szkoły Bankowej we Wrocławiu,
e) kopiowania i powielania utworu w technologiach fotomechanicznych lub innych znanych w dniu zawarcia umowy (fotokopie, kserokopie itp.),
f) przetworzenia dzieła na formę elektroniczną i nieograniczonego rozpowszechniania w sieci Internet.
