Title: Assessing efficiency of private sector banks in India: an empirical investigation using DEA

Authors: Sudarshan Maity; Tarak Nath Sahu; Debasish Biswas

Addresses: The Institute of Cost Accountants of India, Kolkata 700016, West Bengal, India ' Department of Commerce, Vidyasagar University, Midnapore 721102, West Bengal, India ' Department of Business Administration, Vidyasagar University, Midnapore 721102, West Bengal, India

Abstract: The present study looks into the technical efficiency of private banks in India for the years 2015-2016 to 2018-2019 using Data Envelopment Approach. The findings are based on three inputs, two outputs models under the assumption of a constant return scale. According to the Shapiro Wilk test, the test for normality shows that the distribution of efficiency scores follows a normal distribution. Further, the Friedman test reveals that there is a significant difference in efficiency scores between the four years. To get a more specific result by a pair-wise combination, Wilcoxon signed-rank test is applied. The Spearman rank correlation is tested to know the correlation between ranks according to business size and rank according to technical efficiency score. The overall analysis shows the dominant big private banks are efficient and with higher technical efficiency scores. The findings are interesting and also point to the scope of improvement for the different banks with low-efficiency scores.

Keywords: data envelope analysis; private sector bank; Shapiro Wilk test; Friedman test; Wilcoxon signed-rank test.

DOI: 10.1504/IJFSM.2020.110223

International Journal of Financial Services Management, 2020 Vol.10 No.2, pp.138 - 155

Received: 27 Mar 2020
Accepted: 01 Jul 2020
Published online: 09 Oct 2020 *

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