Title: Benchmarking the financial performance of Indian commercial banks by a hybrid MCDM approach

Authors: Pawan Kumar; Deergha Sharma

Addresses: The NorthCap University, Sector 23-A, Gurugram, Haryana, 122017, India ' The NorthCap University, Sector 23-A, Gurugram, Haryana, 122017, India

Abstract: The current research has presented a hybrid multi-criteria decision making (MCDM) strategy to assess the financial performance of the ten major commercial banks operating in India from 2016-2017 to 2020-2021. The essential financial performance indicators were obtained from secondary literature and subsequently prioritised using a fuzzified rating scale by applying the fuzzy analytical hierarchy process (AHP) approach. The financial condition of chosen institutions was weighted using the technique for order of preference by similarity to ideal solution (TOPSIS). The cumulative ranking of the selected banks was eventually determined via interval-valued TOPSIS (IV-TOPSIS). The analysis found that return on equity is the most essential of all the financial performance measures, and Bandhan Bank is the top performer among all the examined banks. The study results have proposed specific financial performance standards and provided a requirement for trailing institutions to improve their financial status. The breadth of the study is crucial for bank management and policymakers in the field of strategic decision-making for sustainable banking systems.

Keywords: financial performance; fuzzy AHP; TOPSIS; interval-valued TOPSIS; Indian commercial banks.

DOI: 10.1504/IJPMB.2023.134147

International Journal of Process Management and Benchmarking, 2023 Vol.15 No.3, pp.285 - 309

Received: 07 Apr 2022
Accepted: 15 Apr 2022
Published online: 12 Oct 2023 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article