Title: An integrated benchmarking efficiency analysis of the Indian banking industry using data envelopment analysis

Authors: Nishant Agrawal

Addresses: Institute of Management, Nirma University, Ahmedabad, India

Abstract: The purpose of this paper is to study the performance of Indian private sector banks to conclude meaningful insights. This paper analysed the efficiency of 16 private sector banks operating in India for the period 2015-2017 using data envelopment analysis (DEA), Malmquist productivity index (MPI) and stochastic frontier analysis (SFA) which are the latest powerful efficiency measurement techniques. MPI indicates that only 9 out of 16 private banks or 56.25% private banks have been progressed in terms of MPI during the period 2015-2017. Stochastic frontier analysis shows that a number of employees and no of branches can be considered to driving force for influencing the efficiency of Indian private banks. This study seems to be first in applying efficiency using data envelopment analysis, Malmquist productivity index and stochastic frontier analysis for Indian private banks for the period 2015-2017.

Keywords: benchmarking; efficiency; data envelopment analysis; performance measurement; Malmquist productivity index; stochastic frontier analysis; Indian private bank; variable return-to-scale; constant return-to-scale; Charnes-Cooper-Rhodes.

DOI: 10.1504/IJPMB.2021.117339

International Journal of Process Management and Benchmarking, 2021 Vol.11 No.5, pp.671 - 692

Received: 23 Feb 2019
Accepted: 24 Jul 2019
Published online: 31 Aug 2021 *

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