01181pab a2200133 454500008004000000100001700040245005700057260000900114300001300123362001000136520085700146650001001003773003401013180718b2002   xxu||||| |||| 00| 0 eng d  aDas, Abhimas  aRisk and productivity change of public sector banks.  c2002  ap.437-48  a2 Feb  aWhile 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.  aBanks  aEconomic and Political Weekly