AN ANALYSIS ON EFFICIENCY OF SELECTED PUBLIC SECTOR BANKS WITH REFERENCE TO DEA APPROACH.

Abstract

Banking sector plays very important role in any economy. It mobilizes deposits and transfers the savings to those who are in need of it. It collects the savings from general public for safeguard of their amount and as source of investment. Bank grants loan to borrowers and charges interest on it. Efficiency of any unit is considered with comparison of its input and output. In this study, three variables are considered in average namely Fixed assets, Interest expended and number of employees and output is considered as deposits. The DEA approach follows liner programming and researcher conducted analysis via online software. Under DEA approach, CCR(charnes, cooper and Rhodes) model selected for analysis purpose. For the purpose of sample, five public sector banks namely State Bank of India, Industrial Development Bank of India, Punjab National Bank, Bank of Baroda and Indian overseas bank are selected on the basis of listing in BSE and selection criteria is considered as market capitalization as on Nov 3, 2020 for five years ending 2020