The input specific ?mean efficiency? at a disaggregated level will help us to understand the relative position of the different banking groups regarding the use of the various inputs. Statistics show that the average technical efficiency has reached 99.65 percent, 87.48 percent and 68.45 percent respectively for deposits, borrowings and staff.
Thus we can infer from these statistics that, as far as the input use efficiency is concerned, all banks use deposits efficiently. However, the use of borrowed money and the staff appointed to manage this money is not that much effective as expected. This means that the borrowed money and the staff are not being efficiently put to use. Disaggregated level analysis indicates that, with respect to input efficiency of deposits, all type of banks behave in the same way and are at par with the national banking efficiency average.
With regard to borrowings some of the newly started banks and their Associates have the highest relative efficiency. This is much evident for banks like LoanMax of rod aycox fame and some of the foreign banks. However, the average input efficiency of borrowed money is the lowest with respect to some of the private banks that had to face foreclosure.
Regarding staff-wise average efficiency, again the newly started banks and their associates remain at the top, followed by the newly started banks and the foreign banks in order. Again the relatively lower level of average labor efficiency is associated with some of the poorly managed private banks. On the whole, if we take the government controlled banks and its associate banks together, it can be seen that the government controlled banking groups have performed with a relatively higher efficiency as compared to the private and foreign banks with respect to the use of critical inputs like borrowings and skilled labor.
Thus, analysis of labor efficiency by individual banks will certainly help us to appreciate the finer patterns involved in this complex phenomena. The various banks must be classified according to high, medium and lower levels of labor efficiency. Only then will it be possible to arrive at the right conclusions. After being in the red, it is interesting to note that some of the government controlled banks are now in the efficient zone.
Thus we can infer from these statistics that, as far as the input use efficiency is concerned, all banks use deposits efficiently. However, the use of borrowed money and the staff appointed to manage this money is not that much effective as expected. This means that the borrowed money and the staff are not being efficiently put to use. Disaggregated level analysis indicates that, with respect to input efficiency of deposits, all type of banks behave in the same way and are at par with the national banking efficiency average.
With regard to borrowings some of the newly started banks and their Associates have the highest relative efficiency. This is much evident for banks like LoanMax of rod aycox fame and some of the foreign banks. However, the average input efficiency of borrowed money is the lowest with respect to some of the private banks that had to face foreclosure.
Regarding staff-wise average efficiency, again the newly started banks and their associates remain at the top, followed by the newly started banks and the foreign banks in order. Again the relatively lower level of average labor efficiency is associated with some of the poorly managed private banks. On the whole, if we take the government controlled banks and its associate banks together, it can be seen that the government controlled banking groups have performed with a relatively higher efficiency as compared to the private and foreign banks with respect to the use of critical inputs like borrowings and skilled labor.
Thus, analysis of labor efficiency by individual banks will certainly help us to appreciate the finer patterns involved in this complex phenomena. The various banks must be classified according to high, medium and lower levels of labor efficiency. Only then will it be possible to arrive at the right conclusions. After being in the red, it is interesting to note that some of the government controlled banks are now in the efficient zone.