Does Ownership Influence the Efficiency of Indian Banks? – An Application of DEA

Due to globalization, more private and foreign sector banks started working on Indian soil. Due to the entry of these banks, the public sector banks received huge competition in their day-to-day activities. This study attempted to evaluate the impact of ownership of banks in India. The public and private sector banks were evaluated under homogeneous and heterogeneous environments. The results reveal that the heterogeneous environment (ownership) played a significant role in increasing the efficiency of banks. Due to the ownership, the public sector banks experienced more input losses as compared to private sector banks