Beschreibung:
This paper investigates the total factor productivity (TFP) change scenario among Indian commercial banks during 1998-2015. We measure Malmquist total factor productivity change index and decompose it into technological change, efficiency change and the scale change factor using data envelopment analysis (DEA) method. Further, bootstrap-based Simar and Wilson (2007) procedure is applied to correct the bias from the conventional DEA estimates. We also explain the variations in TFP estimates using a set of environmental variables using fixed effects, system GMM and bias corrected fixed effects models. Our results show improvement in total factor productivity among Indian commercial banks, which was concentrated solely during the pre-global financial crisis period. The productivity gains are mainly driven by the technological progress rather than efficiency improvements. Amongst different ownership categories, foreign-owned banks group that achieves the highest overall productivity gain, followed by the domestic privately owned and state owned banks. Finally, our TFP regression results show that bank size, capital adequacy ratio, product diversification and return on assets are the main variables responsible for driving these TFP differences