Technical Efficiency of Public Sector Banks in India: An Empirical Study
Nitashree Barman (),
Dr. Kingshuk Adhikari () and
Dr. Nikhil Bhusan Dey ()
Additional contact information
Nitashree Barman: Research Scholar, Department of Commerce, Assam University (A Central University), Silchar, India
Dr. Kingshuk Adhikari: Assistant Professor, Department of Commerce, Assam University (A Central University), Silchar, India
Dr. Nikhil Bhusan Dey: Professor, Department of Commerce, Assam University (A Central University), Silchar, India
Journal of Commerce and Trade, 2015, vol. 10, issue 1, pages 56-65
The purpose of the present paper is to analyse the performance of public sector banks in India for the period 2002-03 to 2011-12 with the help of non-parametric frontier approach. The technical efficiency of twenty five (25) public sector banks has been computed using Data Envelopment Analysis (DEA) model and the same has been further decomposed into pure technical efficiency and scale efficiency. The study reveals that on an average, technical efficiency score of the banks has turned out to be 0.963 and majority of the banks have obtained efficiency score within the range of (0.982-0.999). The empirical findings of the study conclude that performance of the public sector banks in respect of optimum utilization of inputs for producing the given level of output has improved over the period. However, the major source of technical inefficiency of public sector banks in India is found to be managerial inabilities in converting inputs into outputs optimally rather than inappropriate size of operation.
Keywords: Technical Efficiency; Pure Technical Efficiency; Scale Efficiency; Data Envelopment Analysis (search for similar items in EconPapers)
JEL-codes: G21 G24 Z0 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:jct:journl:v:10:y:2015:i:1:p:56-65
Access Statistics for this article
Journal of Commerce and Trade is currently edited by Dr. Himanshu Agarwal
More articles in Journal of Commerce and Trade from Society for Advanced Management Studies
Series data maintained by Dr. Himanshu Agarwal ().