Determinants of Business Banking Efficiency in Private Sector Banks: An Empirical Analysis of Indian Banking Industry
Keywords:
Business Banking Efficiency, Digital Transformation, Operational Productivity, Credit Risk, Cost Efficiency, Private Sector Banks, Indian Banking Industry.Abstract
Business banking efficiency has become a critical factor for improving the competitiveness and long-term sustainability of private sector banks in India. This study examines the influence of digital transformation, operational productivity, credit risk, and cost efficiency on business banking efficiency in selected Indian private sector banks. The research is based on secondary data collected from annual reports and banking publications covering the period 2019–2025. Multiple regression analysis, correlation analysis, descriptive statistics, and ANOVA are employed to evaluate the relationship between the selected determinants and banking efficiency. The findings indicate that digital transformation and employee productivity have a significant positive impact on business banking efficiency, whereas higher credit risk and operating costs adversely affect overall performance. The study provides practical insights for bank managers and policymakers to strengthen operational efficiency, improve resource utilization, and enhance sustainable business growth in the evolving Indian banking industry.
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