Risk and productivity change of public sector banks.
By: Das, Abhimas.
Material type:
ArticlePublisher: 2002Description: p.437-48.Subject(s): Banks
In:
Economic and Political WeeklySummary: While the relationship between portfolio risk and capital and its interrelationship with operating efficiency has been explored elsewhere limited evidence has been forthcoming on the interrelationships among capital, non-performing loans and productivity. The paper makes an attempt to examine the same in the Indian context. Using data on public sector banks (PSBs) for the period 1995-96 through 2000-2001, the paper finds capital, risk and productivity change to be interwined, with each reinforcing and to a degree, complementing the other. The results imply that inadequately capitalised banks have lower productivity and are subject to a higher degree of regulatory pressure than adequately capitalised ones. Finally, the results lend some credence to the belief that lowering government ownership tends to improve productivity. - Reproduced.
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | Volume no: 37, Issue no: 5 | Available | AR51633 |
While the relationship between portfolio risk and capital and its interrelationship with operating efficiency has been explored elsewhere limited evidence has been forthcoming on the interrelationships among capital, non-performing loans and productivity. The paper makes an attempt to examine the same in the Indian context. Using data on public sector banks (PSBs) for the period 1995-96 through 2000-2001, the paper finds capital, risk and productivity change to be interwined, with each reinforcing and to a degree, complementing the other. The results imply that inadequately capitalised banks have lower productivity and are subject to a higher degree of regulatory pressure than adequately capitalised ones. Finally, the results lend some credence to the belief that lowering government ownership tends to improve productivity. - Reproduced.
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