Measuring The Performance And Productivity Of Commercial Banks In The Indian Banking Sector

Abstract

The paper has concentrated on the profitability and productivity of commercial banks during the shifting paradigm of the Indian banking industry. The majority of the past study on the performance assessment of commercial banks in India was carried out before to the liberalization of the banking system, and only a few studies have been carried out after the government implemented reforms. Rarely do studies on both profitability and productivity appear in the context of efficiency measurement, particularly in commercial banks in India. During the course of economic growth, the participation of the banking sector is of utmost significance. With a clear focus on boosting productivity and expanding profitability, the majority of the reforms measures that were implemented in the banking industry were put into effects. In the post-reforms period, it is very necessary to do research on profitability and productivity analysis. This is because the reforms in the banking industry have been focused on enhancing the regulatory framework, the financial health, and the institutional infrastructure. Both the profitability and productivity of commercial banks have been the subject of a comprehensive literature study that has been carried out. India is a market that is still in the process of developing, and some people believe that commercial banks are the most important factor in economic growth. The first thing to note is that there have been very few studies that have focused on the profitability and productivity of commercial banks in India following the reforms that have been implemented. This is a significant gap. In the second place, the banking system did not place a significant focus on structural measures and improvements in standards of disclosure and degree of openness until the banking sector reforms that took place in 1998.