Competition in Indian Banking

Prasad, A.; Ghosh, Saibal

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Competition in Indian Banking

IMF Working Paper No. 05/141

26 Pages Posted: 3 Mar 2006

See all articles by A. Prasad

Saibal Ghosh

Government of India - Economic Analysis & Policy

Date Written: July 2005

Abstract

It is widely perceived that competition in the Indian banking sector has increased since the inception of the financial sector reforms in 1992. Using annual data on scheduled commercial banks for the period 1996-2004, the paper evaluates the validity of this claim in the Indian context. The empirical evidence reveals that the Indian banking system operates under competitive conditions and earns revenues as if under monopolistic competition.

Keywords: Competition, India, banking, Panzar-Rosse statistics

JEL Classification: G21

Suggested Citation: Suggested Citation

Prasad, Ananthakrishnan and Ghosh, Saibal, Competition in Indian Banking (July 2005). IMF Working Paper No. 05/141, Available at SSRN: https://ssrn.com/abstract=888010