DRG Study No. 47: Governance, Efficiency and Soundness of Indian Banks - আৰবিআই - Reserve Bank of India
DRG Study No. 47: Governance, Efficiency and Soundness of Indian Banks
The Reserve Bank of India today released on its website the DRG Study* titled, “Governance, Efficiency and Soundness of Indian Banks”. The study is co-authored by Rachita Gulati, Sunil Kumar, S. Chinngaihlian, Rajendra Raghumanda and Prabal Bilantu. This study adopts a granular research approach and empirically explores the nexus between governance, efficiency and soundness in the Indian banking industry at various disaggregation levels using the dynamic panel data models. Bank-wise composite indices of governance and soundness are computed using the non-parametric “Benefit-of-the-Doubt” approach, and the risk-adjusted profit efficiency scores for banks are estimated by employing the data envelopment analysis approach. The analysis has been completed utilising a unique bank-level panel dataset obtained from publicly available information on corporate governance in the individual bank’s annual report for the period from 2008-09 to 2017-18. The key findings from the study are as follows:
(Yogesh Dayal) Press Release: 2022-2023/733 *: Development Research Group (DRG) has been constituted in Reserve Bank of India in its Department of Economic and Policy Research to undertake quick and effective policy-oriented research backed by strong analytical and empirical basis, on subjects of current interest. The DRG studies are the outcome of collaborative efforts between experts from outside Reserve Bank of India and the pool of research talent within the Bank. These studies are released for wider circulation with a view to generating constructive discussion among the professional economists and policy makers. DRG studies are published on RBI website only and no printed copies will be made available. |