Evaluating the nationalization & privatization effect: a case of Indian banking industry
Open Access
- 23 January 2018
- journal article
- Published by LLC CPC Business Perspectives in Banks and Bank Systems
- Vol. 13 (1), 11-21
- https://doi.org/10.21511/bbs.13(1).2018.02
Abstract
The facilitation of economic transactions and friendly investor environment is undertaken through effective performance of financial systems. Mobilization of savings and funding the profitable business opportunities are essential in improving the efficiency of intermediation. The study aims to evaluate the effects of nationalization and privatization on Indian banks. Various factors have been considered to examine the effects of privatization and nationalization, including sources of public sector inefficiency, measures of firm performance, econometric issues, and the mode of privatization. The data was collected for the period of 1998 to 2016 from Indian banks. Data Envelopment Analysis (DEA) was used to evaluate the financial reports of the banks selected to evaluate the efficiency of input and output variables. Positive results were observed, concerning the efficiency and profitability of banking industry after banks’ privatization. Performance of private banks has been observed effective and efficient as compared to the public sector banks. Privatization of banks must be increased and maintained to sustain the efficiency of the banks and implement strategies to maintain the assets. Future studies may recruit more appropriate sample size to evaluate the privatization and nationalization effects of Indian banking industry. Greater number of banks will provide more precise results, using data envelopment analysis.Keywords
This publication has 16 references indexed in Scilit:
- State Intervention in Banking: The Relative Health of Indian Public Sector and Private Sector BanksPublished by Springer Science and Business Media LLC ,2016
- Partial privatization, lending relationships and executive compensationSouth Asian Journal of Global Business Research, 2016
- EVALUATING THE PERFORMANCE OF INDIAN BANKING SECTOR USING DEA DURING POST-REFORM AND GLOBAL FINANCIAL CRISISJournal of Business Economics and Management, 2016
- Quasi‐Nationalisation in the UK Banking Crisis: A Problematic Policy OptionFinancial Accountability & Management, 2015
- Asset Liability Mismatch- An Empirical study on nationalized commercial banks in BangladeshAsian Business Review, 2015
- Bank privatization, finance, and growthJournal of Development Economics, 2014
- Indian bank efficiency and productivity changes with undesirable outputs: A disaggregated approachJournal of Banking & Finance, 2013
- Bank ownership, privatization, and performance: Evidence from a transition countryJournal of Banking & Finance, 2013
- Efficiency of Indian Banking Industry in the Post-Reform EraSSRN Electronic Journal, 2011
- The Productivity Effects of Privatization in Ukraine: Estimates from Comprehensive Manufacturing Firm Panel Data, 1989-2005Published by W.E. Upjohn Institute for Employment Research ,2007