Do ATMs Increase Technical Efficiency of Banks in a Developing Country? Evidence from Indian Banks

Sathye, Suneeta; Sathye, Milind

doi:10.1111/auar.12110

Cited by 24 publications

(23 citation statements)

References 68 publications

(93 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Despite the advantages of innovation in the banking sector, some empirical studies mostly from developing nations indicated that innovation technology negatively affects overall bank performance [43,44]. Le and Ngo [40] asserted that, regardless of the absence of an adequate wide variety of clients, higher costs in the infrastructure of Internet banking impact the benefit of banks negatively.…”

Section: Eoretical Review Of the Literature And The Conceptualmentioning

confidence: 99%

The Mediating Role of Employee Innovativeness on the Nexus between Internet Banking and Employee Performance: Evidence from the Republic of Congo

Pea-Assounga

Yao

2021

Mathematical Problems in Engineering

View full text Add to dashboard Cite

In recent years, banks have begun to realize the importance of Internet banking services and their connection with the banking sector. The main purpose of this article was to find the mediating role of employee innovativeness in the relationship between Internet banking and employee performance of certain banks in the Republic of Congo. A 350-sample size was considered, and a partial least square and structural model equation was used for data analysis. The research results suggested that Internet banking positively affects employee performance and employee innovativeness. They also confirmed that employee innovativeness partially mediates the relationship between Internet banking and employee performance. The theoretical model was built based on Diffusion of Innovation (DOI) Theory, Job Demands-Resources (JD-R) Model, Absorptive Capacity Theory (ACT), and Resource-Based View Theory. This work makes a more accurate contribution to the literature on Internet banking and employee performance. The study further provided recommendations and suggests directions for future studies.

show abstract

Section: Eoretical Review Of the Literature And The Conceptualmentioning

confidence: 99%

The Mediating Role of Employee Innovativeness on the Nexus between Internet Banking and Employee Performance: Evidence from the Republic of Congo

Pea-Assounga

Yao

2021

Mathematical Problems in Engineering

View full text Add to dashboard Cite

show abstract

“…Raina and Sharma (2013) concluded that the substantial inefficiency that was present among the PSBs over the period 2006–2011 was not because of underutilization of financial resources by the managers but due to the regulatory environment. Sathye and Sathye (2017) have performed an intriguing investigation on whether ATMs increment technical efficiency of the Indian banks. Contrasting to other similar studies on banks of developed countries, they proposed, based on their finding that there is an adverse effect of ATM intensity on the bootstrap DEA technical efficiency, that anticipated results would not be produced without automation of the processes related to ATMs.…”

Section: Literature On Efficiency In Bankingmentioning

confidence: 99%

Efficiency analysis of Indian banking industry over the period 2008–2017 using data envelopment analysis

Tamatam

Dutta

et al. 2019

BIJ

View full text Add to dashboard Cite

Purpose The purpose of this paper is to estimate the relative efficiencies of banks of the Indian domestic banking sector by employing various models of data envelopment analysis (DEA) using the panel data of the recent decade (2008–2017). The paper provides a comparative analysis of these models based on the efficiency outputs. It compares the performance of banks based on their ownership and sizes and studies the decade-long trend of productivity using Malmquist indices. Design/methodology/approach This paper estimates overall technical, pure technical and scale efficiencies of 21 public sector banks and 17 private banks. It compares the descriptive statistics of efficiency estimates found out through 18 different DEA models and compares them using two non-parametric statistical tests. It studies the difference in efficiencies based on ownership and size by applying the same statistical tests. It employs the Malmquist index method to study the technological and technical progress in the banks’ productivity over the decade of FY 2008–FY 2017. Findings During FY 2016–2017, only 9 out of 38 banks were overall technically efficient with the whole sample having a mean overall technical inefficiency of 5 percent with scale inefficiency contributing more than pure technical inefficiency. The comparative study ascertains that private sector and public sector banks (PSBs) possess efficiencies that are similar based on super-efficiency slack-based model – variable returns to scale and non-oriented, a model that the authors argue to be the most suitable for the real-life business banking scenarios whereas the private sector banks possess better efficiency than the PSBs. The Malmquist indices prove that private sector banks have a higher increase in productivity based on both technological progress and efficiency improvements whereas PSBs had a loss of efficiency and comparatively less improvement in technology. Research limitations/implications This study has a limitation of choosing a single model of inputs and outputs. Improved insights can be drawn by employing more models based on different inputs and outputs. Further, relevance of each input and output can be examined using a regression-based feedback mechanism (Ouenniche and Carrales, 2018). The influence of environmental factors on the efficiencies can be studied using second-stage regression models and the relationship between efficiency scores and financial ratios can be examined. Originality/value This study is based on the panel data of the recent decade (2008–2017) and provides insights into the efficiency scenario of the Indian banking industry and how it changed over the past decade, to the leadership of banks, the banking regulators and the policy makers. The comparative analysis of DEA models based on a sample of Indian banks is first of its kind in the Indian context and helps the researchers to select an appropriate model and delve into further research on the same.

show abstract

“…Previous studies have examined the appropriate inputs for DEA applications in the banking industry. Some of the outputs that are currently widely used are total loans (Chen & Yeh 1998;Diallo 2918;Howland & Rowse 2006;Sufian & Noor 2009;Wu et al 2006;Golany & Storbeck 1999;Resti 1997;Felix et al 1998), interest income and non-interest income (Felix et al 1998;Sakar 2006;Mukherjee et al 2002;Sathye & Sathye 2017). Total loans and interest income are very appropriate measures of output to use in determining the technical efficiency of RDBs as their income is dominated by loan disbursement, which carries an income generation capacity.…”

Section: Literature Review Bank Efficiency and Data Envelopment Analysismentioning

confidence: 99%

Determinants of Bank Effciency: Evidence from Regional Development Banks

Lutfi¹,

Suyatno²

2019

JEM

View full text Add to dashboard Cite

This study examines the technical efficiency level of regional development banks (RDBs) in Indonesia and then analyzes the influence of bank-specific factors on this efficiency. This study uses data from all 25 conventional RDBs in Indonesia for the period 2012-2017 and a two-stage procedure to examine bank efficiency. Data Envelopment Analysis (DEA) is used to estimate bank technical efficiency and panel data techniques, both fixed effects (FE) and random effects (RE), are used to assess the determinants of bank efficiency. The results of this study indicate that most Indonesian RDBs have yet to become efficient. The most important source of their inefficiency is non-interest income. Furthermore, bank efficiency is positively influenced by capital and the loan-to-deposit ratio, while it is negatively affected by non-performing loans and the proportion of time deposits. There is also evidence that bank size has a U-shaped influence on efficiency. This study recommends that RDBs should increase the capital in improving its fee-based income through the development of innovative technology-based products and services. RDBs also need to optimize their use of depositors' funds for lending coupled with prudential principles to avoid problematic loans.

show abstract

Do ATMs Increase Technical Efficiency of Banks in a Developing Country? Evidence from Indian Banks

Abstract: Prior studies have confirmed that the greater the investment in information technology (IT),

Cited by 24 publications

References 68 publications

The Mediating Role of Employee Innovativeness on the Nexus between Internet Banking and Employee Performance: Evidence from the Republic of Congo

The Mediating Role of Employee Innovativeness on the Nexus between Internet Banking and Employee Performance: Evidence from the Republic of Congo

Efficiency analysis of Indian banking industry over the period 2008–2017 using data envelopment analysis

Determinants of Bank Effciency: Evidence from Regional Development Banks

Contact Info

Product

Resources

About