Journal Press India^®

Author Details ( * ) denotes Corresponding author

Purpose: This research attempts to analyze the impact of IT initiatives, which are taken more by private and foreign banks as compared to public sector banks using DEA approach. Design/Methodology/Approach: In this paper, after defining input and output parameters, Data Envelopment Analysis (DEA) is used to study the impact of computerization on Indian banks' profitability and productivity. Findings: Results show that ICICI Bank is found to be efficient in all indicators. ICICI Bank has been the leader in IT introduction and adoption. ICICI Bank initiated internet banking services in the year 1997.This was followed by HDFC Bank, Indusind Bank, Federal Bank, Citibank and ABN AMRO. Nearly 70% of ICICI Bank transactions take place electronically, resulting in lower cost of transactions, high productivity and better profitability Research Limitations: This study is limited to Indian banks. Managerial Implications: Private sector banks, which took more IT initiative were found to be more efficient in productivity and profitability parameters than public sector banks. Originality/Value: This paper shows the original work of authors in the fields of DEA

Keywords

Computerization, Data Envelopment Analysis, Productivity and Profitability of Indian Banks.

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