Volume : V, Issue : IV, April - 2015

Impact of Size on The Operational Efficiency of Public Sector Banks in India–A Statistical Analysis

Mr B V Ramana Rao, Prof G V Chalam

Abstract :

 Though the consolidation of banking sector has been debated since financial sector reforms in early nineties, it is gaining ground during the current decade and is one of the emerging trends in the banking 

sector. A study of the relationship between the size and the operational efficiency of the public sector banks is attempted in this paper. The present study is on the 20 public sector banks based on the secondary data for the last five 
year period 2009–10 to 2013–14. 
Cost to Income Ratio (CIR) is taken as a measure of operational efficiency and size of assets of the bank as measured 
by log of assets is taken as dependent variable. Though data analysis of all the 20 banks revealed negative correlation 
between CIR and log of assets indicating positive impact of size on operational efficiency, the strength of the relationship is not so strong.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Mr B V Ramana Rao, Prof G V Chalam Impact of Size on The Operational Efficiency of Public Sector Banks in India–A Statistical Analysis Indian Journal of Applied Research, Vol.5, Issue : 4 April 2015


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