Analysis of Technical Efficiency of Indian Banking Sector

Data Envelopment Analysis with Sensitive Analysis and Super-efficiency in Indian Banking Sector

Data envelopment analysis (DEA) is non-parametric linear programming (LP) based technique for estimating the relative efficiency of different decision making units (DMUs) assessing the homogeneous type of multiple-inputs and multiple-outputs. The procedure does not require a priori knowledge of weights, while the main concern of this non-parametric technique is to estimate the optimal weights o...

Technical Efficiency of the Banking Sector in Pakistan

This study uses a sample of 30 banks (4 public, 18 local private and 8 foreign banks) and two stage Data Envelopment Analysis (DEA) to provide evidence on the impact of macroeconomic and bank specific factors on banks’ efficiency. We first use DEA to estimate technical and scale efficiency and then Tobit regression approach to find out the impact of several bank-specific and macroeconomic facto...

Financial reforms and technical efficiency in Indian commercial banking: A generalized stochastic frontier analysis

In this study we estimate technical efficiency of Indian commercial banks from 19892009 using a multiple-output generalized stochastic production frontier, and analyze the effects of financial sector reforms on measured efficiency. This generalized technique estimates technical efficiency in the presence of multiple outputs, filling a gap in the existing literature. Our results show that Indian...

Scale Efficiency in Banking Sector of Pakistan

The study employs data envelopment analysis to a panel of commercial banks operating in Pakistan for a period 2001 – 2008 in order to measure the technical efficiency of banks. Technical efficiency is then broken down into pure technical and scale components. We divide banks into three categories for analytical purposes: state owned banks, domestic private banks and foreign owned banks. We find...

Indian Banking Sector: Challenges and Opportunities