Literature Review: Banking and Finance

The results are insightful to the financial policy planner as it identifies priority areas for different banks, which can improve the performance. This paper evaluates the performance of Banking Sectors in India. B. Cattish Kumar (2008), In his article on an evaluation of the financial performance of Indian private sector banks wrote Private sector banks play an important role In development of Indian economy. After liberalizing the banking Industry underwent major changes. The economic reforms totally have changed the banking sector.

RIB permitted new banks to be started in the private sector as per the recommendation of Marshland committee. The Indian banking industry was dominated by public sector banks. But now the situations have changed new generation banks with used of technology and professional management has gained a reasonable position in the banking industry. Bribers K. Shah, Unhanded Sings (2007), this paper attempts to examine, the performance trends of the Indian commercial banks for the period: 1997-98 – 004-05.

Our broad empirical findings are indicative in many ways. First, the increasing average annual trends in technical efficiency for all ownership groups indicate an affirmative gesture about the effect of the reform process on the performance of the Indian banking sector. Second, the higher cost efficiency accrual of private banks over nationalized banks Indicate that nationalized banks, though old, do not reflect their learning experience in their cost minimizing behavior due to X- inefficiency factors arising from government ownership.

This finding also highlights the possible stronger disciplining role played by the capital market indicating a strong link between market for corporate control and efficiency of private enterprise assumed by property right hypothesis. And, finally, concerning the scale elasticity behavior, the technology and market-based results differ significantly supporting the empirical distinction between returns to scale and economies of scale, often used interchangeably in adulterate.

Viral, Visa, Mauler, Nicaragua (2006), In his study on’ Measurement of efficiency of ann. In India concluded that In modern world performance of banking Is more Important to stable the economy -In order to see the efficiency of Indian banks we have see the fore indicators I. E. Profitability, productivity, assets, quality and financial period 2000 and 1999 to 2002-2003. For measuring efficiency of banks we have adopted development envelopment analysis and found that public sectors banks are more efficient then other banks in India Petty Kava Oily 2003), in his study on The Performance of Indian Banks.

During Financial Liberalizing states that new empirical evidence on the impact of financial liberalizing on the performance of Indian commercial banks. The analysis focuses on examining the behavior and determinants of bank intermediation costs and profitability during the liberalizing period. The empirical results suggest that ownership type has a significant effect on some performance indicators and that the observed increase in competition during financial liberalizing has been associated with lower intermediation costs and profitability of the Indian banks.