Productivity, Performance and Technical Efficiency in Banking: The foreign Bank’s Saga in the Context of Financial Reforms in India

Abstract

This paper is an attempt to examine the total productivity growth of foreign banks for the period 2002-2003 to 2013-2014. Data of ten major foreign sector banks for twelve years were used for the analysis and interpretation. Malmquist Productivity Index and Input oriented CRS data envelopment analysis are being used to measure the productivity of these banks over the years. Along with the productivity of foreign sector banks, their performances were also determined through ratios. The results show that the foreign sector banks has obtained an excellent mean TFP of 1.06 and nine foreign sector banks has obtained an eligible score of one which depicts that foreign sector banks are doing well in the country. The excellent performance of foreign sector banks in the banking industry is further substantiated with the ratios. The study has revealed that by enlarging the scope of foreign banks will obviously bring growth, development and technological advancement in the Indian banking Sector.