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

Jolly Puri and Shiv Prasad Yadav

International Journal of Operational Research, 2013, vol. 18, issue 1, 91-121

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. (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijores:v:18:y:2013:i:1:p:91-121

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