Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246635 
Year of Publication: 
2020
Citation: 
[Journal:] Future Business Journal [ISSN:] 2314-7210 [Volume:] 6 [Issue:] 1 [Publisher:] Springer [Place:] Heidelberg [Year:] 2020 [Pages:] 1-9
Publisher: 
Springer, Heidelberg
Abstract: 
This paper addresses the concerns regarding the sustainability of the banking sector in India prompted by the recent unintended high level of non-performing assets (NPAs). It uncovers the linkage between NPAs and banking efficiency by integrating NPAs into the measurement of bank efficiency to provide a holistic efficiency profile of the Indian banking sector. We apply the general two-stage data envelopment analysis of Kao [16] by incorporating NPAs as an exogenous output from the first stage, and the empirical results identify an efficiency gap of 16.2% due to NPAs in the Indian banking sector for the year 2016. Further, it also documents that the efficiency gap/loss is increasing over the years and differs according to the shareholding pattern of the banks.
Subjects: 
General two-stage network DEA
Bank efficiency
India
Non-performing assets
JEL: 
G21
P42
C14
C44
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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