scholarly journals Technical Efficiency of Public Sector Banks in India Using Data Envelopment Analysis

2014 ◽  
Vol 16 (9) ◽  
pp. 52-59
Author(s):  
M. Sravani ◽  
2020 ◽  
Vol 15 (4) ◽  
pp. 108-120
Author(s):  
Sangeetha R

This study examines the efficiency of Public Sector Banks (PSBs) in India using Data Envelopment Analysis (DEA). Analysis is carried out on a sample of 19 PSBs that are existed during the study period from 2005 to 2018. There are two different aspects deliberated, namely technical efficiency of PSBs and the growth in their productivity. Input variables envisaged for the study are deposits, borrowings, fixed assets, and the number of employees. Loans and advances along with investments act as output variables to measure technical efficiency and productivity. The results indicate that the technical efficiency of PSBs ranges between 97% and 100%. Corporation Bank, Indian Bank, and Oriental Bank of Commerce outperformed their peers with 100% technical efficiency. Productivity growth among the sampled banks during the study period stood between 0.8% and 20%. However, Corporation Bank, Indian Bank, and Oriental Bank of Commerce registered 9.1%, 5.4% and 6.4% productivity growth, respectively. The results reveal that PSBs are working hard to optimize resource utilization. Researchers around the world can use DEA as a tool to measure the efficiency of banks with different input and output variables related to financial, marketing and managerial performance. AcknowledgmentI like to express my profound thanks to Dr Kishore Selva Babu for rendering his language expertise. I also thank all the anonymous reviewers for their valuable comments and feedback that greatly improved the manuscript.


2018 ◽  
Vol 13 (1) ◽  
pp. 11-21 ◽  
Author(s):  
Manju Rajan Babu ◽  
Ashok Kumar M.

The facilitation of economic transactions and friendly investor environment is undertaken through effective performance of financial systems. Mobilization of savings and funding the profitable business opportunities are essential in improving the efficiency of intermediation. The study aims to evaluate the effects of nationalization and privatization on Indian banks. Various factors have been considered to examine the effects of privatization and nationalization, including sources of public sector inefficiency, measures of firm performance, econometric issues, and the mode of privatization. The data was collected for the period of 1998 to 2016 from Indian banks. Data Envelopment Analysis (DEA) was used to evaluate the financial reports of the banks selected to evaluate the efficiency of input and output variables. Positive results were observed, concerning the efficiency and profitability of banking industry after banks’ privatization. Performance of private banks has been observed effective and efficient as compared to the public sector banks. Privatization of banks must be increased and maintained to sustain the efficiency of the banks and implement strategies to maintain the assets. Future studies may recruit more appropriate sample size to evaluate the privatization and nationalization effects of Indian banking industry. Greater number of banks will provide more precise results, using data envelopment analysis.


2017 ◽  
Vol 6 (1) ◽  
pp. 111-125 ◽  
Author(s):  
Ombir Singh ◽  
Sanjeev Bansal

Abstract The paper investigates and compares the performance of the Indian public sector banks (PSBs) based on revenue maximising efficiency in the deregulation period from 2001-02 to 2012-13. Several efficiency estimates viz., overall technical efficiency, pure technical efficiency and scale efficiency of individual banks are calculated using Data Envelopment Analysis (DEA). The empirical findings indicate the presence of managerial and scale inefficiencies in the operation of the most of the PSBs. Applying the Tobit regression analysis, the paper also assesses the impact of different environmental factors, like profitability, the level of non-performing assets, size etc. on the efficiency of PSBs. It is observed that banks with high profitability, low level of non-performing assets, and relatively larger size are more technically efficient.


2015 ◽  
Vol 65 (s2) ◽  
pp. 101-113 ◽  
Author(s):  
Ling Jiang ◽  
Yunyu Jiang ◽  
Zhijun Wu ◽  
Dongsheng Liao ◽  
Runfa Xu

In the era of knowledge economy, a country’s economic competitiveness depends largely on the development level of high-tech industry. This paper evaluates the efficiency of China’s high-tech industry in 31 provinces in 2012 with data envelopment analysis. The empirical results are summarized as following. Firstly, when the effects of exogenous environmental variables are not controlled, the comprehensive technical efficiency of 31 provinces will be overestimated, the pure technical efficiency will be underestimated, and the scale efficiency value will be overestimated. Secondly, after eliminating the environmental impact, the comprehensive technical efficiency of 31 provinces with the average of 0.395 is rather low, due to the low scale efficiency.


2018 ◽  
Vol 286 (1-2) ◽  
pp. 703-717
Author(s):  
Murilo Wohlgemuth ◽  
Carlos Ernani Fries ◽  
Ângelo Márcio Oliveira Sant’Anna ◽  
Ricardo Giglio ◽  
Diego Castro Fettermann

2019 ◽  
Vol 2 (2) ◽  
pp. 82-89
Author(s):  
Nor Tasik Misbahrudin

Waqf is a voluntary charity that cannot be disposed of and the ownership cannot be transferred once it is declared as waqf assets. Waqf institutions play an important role in helping the development of Muslims ummah through wealth distribution. State Islamic Religious Councils (SIRCs) in Malaysia are the sole trustee that manage and develop waqf assets. Based on selected input and output, the intermediary approach assumes that cash waqf received as output while total expenditure of SIRCs as input. Under this approach SIRCs act as intermediary between waqif (giver) and beneficiaries. Thus, this paper attempts to analyze the efficiency of waqf institutions in Malaysia by using Data Envelopment Analysis (DEA) method under output-orientation using Variable Return to Scale (VRS) assumptions. Four SIRCs were selected as decision making units (DMU) for the period of 2011 to 2015. The result indicates that changes in average technical efficiency for every year is contributed by both pure technical and scale. However, inefficiency of Malaysian waqf institutions is mostly contributed by pure technical efficiency aspects rather than scale. 2012 showed the highest average technical efficiency with 73.9% as most of the institutions operated in optimum level of input to produce output. Thus, the result suggests that both technical and scale efficiency should be improved to achieve the most efficient and productive level of performance in order to fulfill objectives of the institutions as an intermediary between waqif and beneficiaries.


2021 ◽  
pp. 2150010
Author(s):  
DO THI THANH NHAN ◽  
KIM-HUNG PHO ◽  
DANG THI VAN ANH ◽  
MICHAEL MCALEER

Efficiency is a topic of great interest because its applications are diverse and rich. It is applied greatly in all scientific disciplines, especially accounting for a very large proportion in economics, finance and accounting. The main objective in this paper is to analyze the effectiveness of banks in Vietnam. In order to investigate this issue, there are several implements to examine bank effectiveness where the data envelopment analysis (DEA) method is widely used. This paper presents details of the DEA method. Using the data collected from banks in Vietnam for the period 2014–2017, the approach is executed to investigate issues of technical efficiency, resource analysis and business efficiency of banks in Vietnam.


Energies ◽  
2020 ◽  
Vol 13 (18) ◽  
pp. 4902
Author(s):  
Biswaranjita Mahapatra ◽  
Chandan Bhar ◽  
Sandeep Mondal

Coal is the primary source of energy in India. Despite being the second-largest coal-producingcountry, there exists a significant difference in demand and production in India. In this study, the relativeefficiency of twenty-eight selected opencast mines from a large public sector undertaking coal companyin India for 2018–2019 was assessed and ranked by using data envelopment analysis (DEA). This studyused input-oriented DEA with efficiency decomposition to pure technical efficiency, technical efficiency,and scale efficiency. The result showed that 25% and 36% of mines were efficient in technical efficiencyand pure technical efficiency, respectively, whereas the eight mines scale efficiency was inefficient witha decreasing return to scale. Further, in this study, theMalmquist Productivity Index (MPI)was employedto measure the efficiency of the selected mines for three consecutive years (2016–2017 to 2018–2019).The result shows that in only three mines the efficiency is continuously improving from 2016–2017 to2018–2019, whereas in more than 20% of mines the efficiency score is decreasing. Comparing theMPIefficiency and productivity assessment throughout the years, changes in innovation and technology areincreasing from 2017–2018 to 2018–2019. Finally, the study concluded with a comprehensive evaluationof each variable with mines performance. The author formulated the strategies, which in turn help coalprofessionals to improve the efficiency of the mine.


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