Technical Efficiency Measurement of Indian Banking companies: An Investigation Using DEA and Super Efficiency Model
Arijit Ghosh1, Munmun Dey2, Gautam Bandyopadhyay2
, and Banhi Guha2
1.St. Xavier’s College, Kolkata, India
2.National Institute of Technology, Durgapur, India
2.National Institute of Technology, Durgapur, India
Abstract—This paper investigates the efficiency of Indian banks enlisted in Bombay Stock Exchange. We applied Data Envelopment Analysis (DEA), to estimate the efficiency of the Indian banks using publicly available financial data of various different parameters related to the financial health of Indian banks. The efficiency of each company in comparison with other companies of the banking sector is estimated. We applied super efficiency model to measure the most efficient bank over a certain time horizon among all the banks. Bank efficiency scores derived using the DEA contributes significant information towards identifying the scope for improvement.
Index Terms—bank efficiency, data envelopment analysis, Constant Return to Scale (CRS), Variable Return to Scale (VRS), super efficiency model.
Cite: Arijit Ghosh, Munmun Dey, Gautam Bandyopadhyay, and Banhi Guha, "Technical Efficiency Measurement of Indian Banking companies: An Investigation Using DEA and Super Efficiency Model," Lecture Notes on Information Theory, Vol. 2, No. 3, pp. 273-278, September 2014. doi: 10.12720/lnit.2.3.273-278
Index Terms—bank efficiency, data envelopment analysis, Constant Return to Scale (CRS), Variable Return to Scale (VRS), super efficiency model.
Cite: Arijit Ghosh, Munmun Dey, Gautam Bandyopadhyay, and Banhi Guha, "Technical Efficiency Measurement of Indian Banking companies: An Investigation Using DEA and Super Efficiency Model," Lecture Notes on Information Theory, Vol. 2, No. 3, pp. 273-278, September 2014. doi: 10.12720/lnit.2.3.273-278