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International Journals of Marketing and Technology
Year : 2013, Volume : 3, Issue : 8
First page : ( 52) Last page : ( 70)
Online ISSN : 2248-1058.

Application of Data Envelopment Analysis [DEA] to study the Performance Efficiency of the Scheduled Commercial Banks of India

Mariappan P., Sreeaarthi G.

Research Supervisor, Management Science, Bishop Heber College, Tiruchirappalli, Tamil Nadu, India

JEL Classification: C14, C61, G21

Online published on 8 October, 2013.

Abstract

The aim of this research work is to evaluate the performance of the seven scheduled Commercial banks of India. For this study the researcher collected the data from 2008 to 2012 and evaluated using Data Envelopment Analysis (DEA). DEA, mainly, takes into account the input and output gears of a Decision Making Unit (DMU) to evaluate their performance. The measure of performance lies in the range 0 to 1. The outcome of this analysis reveals that:

  • The Punjab National Bank and Andhra Bank are relatively efficient based on the output oriented technical efficiency [CRS]

  • The Punjab National Bank, UCO Bank and Dena Bank are relatively efficient based on the input oriented technical efficiency [CRS]

  • Excepting Indian bank all the other banks are relatively efficient based on the output oriented technical efficiency [VRS]

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Keywords

Data Envelopment Analysis, Decision Making Unit, Performance, Efficiency, Constant Return to Scale, Variable Return to Scale.

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