1. Introduction -- 2.Banking System in India: Developments, Structural Changes and Institutional Framework -- 3.Measurement of Bank Efficiency: Analytical Methods -- 4. A Survey of Empirical Literature on Bank Efficiency -- 5. Relevance of Non-traditional Activities on the Efficiency of Indian Banks -- 6.Financial Deregulation in the Indian Banking Industry: Has it improved cost efficiency? -- 7. Sources of Productivity Gains in Indian Banking Industry: Is it Efficiency Improvement or Technological Progress? -- 8.Major conclusions, policy implications and some areas for future research