Intertemporal Behavior of Technical Efficiency: A Study of Indian Commercial Banks

Application of static Data Envelopment Analysis (DEA) on the time series data relating to a set of decision-making units fails to capture important interactions from period to period. Window analysis is a model structure which provides a more robust treatment to the movement in efficiency over time. The present study thus makes use of the window analysis for comparing the intertemporal efficiency behavior of 28 public sector banks and 12 private sector banks for the period 2001-02 to 2005-06. The results suggest that the mean efficiency scores of the in-sample public and private sector commercial banks for the period 2001-02 to 2005-06 exhibit a secular declining trend.