Managerial Efficiency Analysis – A Comparative Study on Selected Public Sector and Private Sector Banks in India
Keywords:
Business per employee, Cash-deposit ratio, Managerial Efficiency, Private sector banks, Public sector banksAbstract
Banking industry in India has outperformed due to trust and confidence from the public. The question of stability can be answered through the efficiency of its operations both financially and managerially. The parameters to measure the efficiency are proved to be vivid and dynamic due to globalization and advent of foreign banks. This structural change has further forced individual banking institutions, especially state-owned banks, to inspect the performance of their branches and identify improvement directions so as to gain further competitive advantages. This paper aims to conduct a valid, fair and reliable evaluation on managerial efficiency of public and private sector Indian banks through three parameters namely Cash deposit ratio, Business per person and Profit per employee Five banks were selected from public and private sector banks for the study where the data relating to above said parameters were collected for a period of ten years i.e. from 2006 to 2015.The data collected was analysed using both comparative and cross sectional analysis among the sectors and within the sectors using One Way ANOVA and t-test to know the statistical significance of the data using Ms Excel. It is observed that the managerial efficiency of public sector and private sector banks do not differ significantly.
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