Evolution of Strategic Groups amongst Public Sector Banks in India
Journal Title: PRAGATI: Journal of Indian Economy - Year 2017, Vol 4, Issue 1
Abstract
As a result of reforms, competition has led to the expansion of banking markets. With the entry of new private and foreign banks, the competition has affected the conduct of public sector banks. Our objective is to determine whether conduct of public sector reveals that there are strategic groups amongst Public Sector Banks. We have estimated the growth rates of the PSBs as a sector, as well as, two strategic groups, viz., SBI Group and Nationalised banks. Using paired t-test on the data for 1992 and 2016, we have compared the conduct of the two strategic groups, for four conduct variables. All four conduct variables, namely, advertising expenditure, operating expenditure, diversification, and investment in government securities show the presence of strategic groups amongst public sector banks. The paper also establishes that strategic groups are a part of conduct, not structure. It is well established through a set of t-test that in the case of public sector banks, strategic groups, to begin with, did not exist. However, with the emergence of competition, public sector banks chose to polarize as to distinct strategic groups through a process of dynamic formation of such groups namely, SBI group and Nationalised group. We establish through this paper that evolution of strategic groups amongst public sector banks have taken place over the time period.
Authors and Affiliations
Sonia .
Keywords
Related Articles
- EP ID EP623268
- DOI 10.17492/pragati.v4i01.9547
- Views 245
- Downloads 0
Self Help Group: A Strategy to Rural Development of Puri District in Odisha, India
On the basis of a micro level study for Puri district in Odisha, this paper finds that the Self Help Groups (SHGs) have played a positive and significant role in generation of employment and income of its members engaged...
Empowerment of Women through MGNREGA in Nadia District of West Bengal
The basic objective of this study is to explain the impact of MGNREGA on women empowerment in the study area. The present study is based on primary data collected from 200 women of Santipur block in Nadia district, West...
Citizens’ View on Digital Initiatives and e-Readiness: A Case Study for AADHAR Project in Madhya Pradesh
The objective of this study is to understand the initiative of e-Governance in India. The paper examines an essential element for the success of e-Initiates of Government of India, i.e., the e-readiness of people, for th...
A Critical Appraisal of Demonetisation in India
‘Demonetisation’ has been a gigantic economic experiment in the history of India. It has been largely accepted by observers that the pronounced objectives of demonetization were noble ones that included elimination of bl...
A Discussion on India’s Manufacturing Sector: Weaknesses and the Way Forward
Despite the significant role of the tertiary sector to national growth and employment generation, there is no denying to the importance of the manufacturing sector which has the potential to bring stable and sustainable...