Performance evaluation of Pubilc sector banks in India-Data envelopment analysis

Banking sector of India is flourishing and contributing to its economy. In this aspect measuring relative efficiency among the banks is essential. Data Envelopment Analysis technique is used for this purpose. The data are collected from performance highlights of twenty six different banks in India published by Indian banks association. Data Envelopment Analysis is mainly of two types – constant returns to scale and variable returns to scale with Input and Output oriented. Since this study attempts to maximize output, so the output oriented Data Envelopment Analysis is considered here. The most efficient bank is one that obtains the highest efficiency score.