Measurement of GVA in Indian banks: some preliminary results

Measurement of Gross Value Added (GVA) in the banking sector is still a debatable and unresolved issue. Current proposals for measuring GVA are the following: SNA93's FISIM approach; user cost of money approach promoted by a set of researchers led by Barnett (1978) and Fixler (1993); margin industry approach suggested by Triplett and Bosworth (2004). Each of the method has merits and lacunae, especially for measurement of GVA for a developing country like India. Against this background, the paper examines relevance of these approaches vis-a-vis output of banks as perceived in the theoretical banking models.