Title: Data envelopment analysis in efficiency measuring of District Central Cooperative Banks in India: a case study

Authors: Mohd. Shamim Ansari; Monika; Irfan Ali

Addresses: Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India ' Department of Banking, Economics and Finance, Bundelkhand University, Jhansi Uttar Pradesh, India ' Department of Statistics and Operations Research, Aligarh Muslim University, Aligarh, Uttar Pradesh, India

Abstract: Over time, cooperative banks lost their dominance in agricultural credit which they enjoyed earlier, and presently they are facing many issues such as deposit management, liquidity management, deterioration in asset quality and so on which affect the performance and efficiency of banks. This study will help the policymakers and management to understand the nature and extent of inefficiency in District Central Cooperative Banks (DCCBs). Efficiency is essential for profitable growth of any decision-making units (DMUs), which will ensure value appreciation and survival in the long run. This paper is an attempt to measure the technical efficiency of DCCBs of Uttar Pradesh by applying Charnes, Cooper and Rhodes (CCR) model (Charnes et al., 1978) of data envelopment analysis. For the study purpose, all 50 DCCBs operating in the Uttar Pradesh state of India have been divided into 18 divisions as per the zonal classification of Uttar Pradesh administration. The estimated result shows that two-division are relatively most efficient, while three-division are less efficient. By improving the management of NPA, deposit management, increasing borrowing, loans and advances, less efficient banks can improve their efficiency.

Keywords: cooperative; non-performing asset; NPA; technical efficiency; Charnes, Cooper and Rhodes; CCR model; data envelopment analysis; DEA.

DOI: 10.1504/IJOR.2023.132817

International Journal of Operational Research, 2023 Vol.47 No.4, pp.440 - 460

Received: 27 Aug 2020
Accepted: 24 Dec 2020

Published online: 10 Aug 2023 *

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