Title: Performance evaluation of public and private sector banks in India using DEA approach

Authors: Jolly Puri; Shiv Prasad Yadav

Addresses: Department of Mathematics, IIT Roorkee, Roorkee 247667, India ' Department of Mathematics, IIT Roorkee, Roorkee 247667, India

Abstract: This paper seeks to measure the OTE, PTE and SE of PuSBs and PrSBs for the year 2009 to 2010 using DEA. The findings show that: 1) PuSBs outperformed PrSBs in all categories of efficiencies; 2) the contribution of scale inefficiency in overall technical inefficiency has been observed to be smaller than the contribution of pure technical inefficiency; 3) in PuSBs, State Bank of India (SBI) & its Associates outperformed nationalised banks and in PrSBs, new PrSBs outperformed old PrSBs; 4) the highest and lowest levels of average overall technical inefficiency have been seen for old PrSBs (48.8%) and SBI & its Associates (2.2%), respectively; 5) the results of the present study, by sensitivity analysis, are quite robust to discriminate between efficient and inefficient banks.

Keywords: efficiency measurement; data envelopment analysis; DEA; public sector banks; private sector banks; India; banking industry; technical efficiency; scale efficiency; bank efficiency.

DOI: 10.1504/IJOR.2013.055540

International Journal of Operational Research, 2013 Vol.18 No.1, pp.91 - 121

Received: 23 Jan 2012
Accepted: 04 Jul 2012
Published online: 29 Jul 2014 *

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