The goal of this book is to assess the efficacy of India's
financial deregulation programme by analyzing the developments in
cost efficiency and total factor productivity growth across
different ownership types and size classes in the banking sector
over the post-deregulation years. The work also gauges the impact
of inclusion or exclusion of a proxy for non-traditional activities
on the cost efficiency estimates for Indian banks, and ranking of
distinct ownership groups. It also investigates the hitherto
neglected aspect of the nature of returns-to-scale in the Indian
banking industry. In addition, the work explores the key
bank-specific factors that explain the inter-bank variations in
efficiency and productivity growth. Overall, the empirical results
of this work allow us to ascertain whether the gradualist approach
to reforming the banking system in a developing economy like India
has yielded the most significant policy goal of achieving
efficiency and productivity gains. The authors believe that the
findings of this book could give useful policy directions and
suggestions to other developing economies that have embarked on a
deregulation path or are contemplating doing so.
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