Efficiency Measurement of Indian Banking Sector by Using Data Envelopment Analysis

Banking sector has undergone several major transformations during the past few years. Numerous reformations, liberalizations, progressions in technology etc. has made the sector exclusively lucrative. This paper tries to assess the impact of these revolutions on the sector. Efficiency serves as one of the crucial indicator of the performance. The paper appraises by taking into consideration various efficiency factors to determine the efficiency of 18 different private and public sector banks against the independent output variables assets, profits and deposits. This study employed Data Envelopment Analysis model, a non-parametric technique to examine the efficiency score. Input oriented efficiency with constant return model has been operated. The results acquainted that SBI, IDBI, Canara and ICICI have sustained high efficiency score from the past 10 years, 2002-2011