A COMPARATIVE STUDY ON THE PERFORMANCE OF VIDYASAGAR CENTRAL CO-OPERATIVE BANK LTD. IN PASCHIM MEDINIPUR DISTRICT: AN APPLICATION OF MALMQUIST PRODUCTIVITY INDEX

Abstract

The present study is an attempt to analysis the efficiency and total factor productivity growth of a cooperative bank (VCC bank) at the branch level for the period 2007 to 2012. The study also makes a district level comparison of efficiency scores and productivity growth of VCC bank with that of SBI and RRB. Bank efficiency has been assessed by applying DEA methodology. Malmquest productivity index has been used to quantify the branch wise total factor productivity growth over the study period. The empirical results establish that there is a declining trend in overall technical efficiency scores of VCC bank. The empirical results also show that this bank registered a negative growth rate of productivity. District level interbank comparison shows that SBI has the highest average overall technical efficiency, followed by RRBs and VCC bank over the sample period. The study also examines that the total factor productivity growth of VCC bank is not significantly lower than that of RRB and also SBI. The study confirms that ownership structure has no impact on TFP growth of the banks.