Analysis of Indian Banking Sector with Reference to Efficiency
Published: 2018
Author(s) Name: Seema Garg and Tushar Jindal |
Author(s) Affiliation: Amity University, Noida, U.P.
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Abstract
This study examines the performance of Indian commercial banks for the period 2011-2013. Study
has utilized the mathematical programming based non parametric technique i.e Data Envelopment
Analysis (DEA) to evaluate the relative efficiency of various Decision Making Units. DEA technique
is used to evaluate the technical efficiency scores using CCR (Charnes, Cooper and Rhodes) model
and pure technical efficiency scores using BCC (Banker, Charnes and Cooper) model, which are
popular among all other methods. The objective of this paper is to evaluate the extent of technical
efficiency in 46 commercial banks operating in India. The study categorizes the most efficient
banks which act as benchmarks for other banks. The results show that only 10 of the 46 banks are
found to be efficient and thus, defined the efficient frontier.
Keywords: DEA, Efficiency, Banks, India, Technical Efficiency.
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