Indira Management Review

The PDF file you selected should load here if your Web browser has a PDF reader plug-in installed (for example, a recent version of Adobe Acrobat Reader).

If you would like more information about how to print, save, and work with PDFs, Highwire Press provides a helpful Frequently Asked Questions about PDFs.

Alternatively, you can download the PDF file directly to your computer, from where it can be opened using a PDF reader. To download the PDF, click the Download link above.

Fullscreen Fullscreen Off


The present paper aims to estimate cost efficiency of twenty five public sector banks in India for the period 2002-03 to 2011-12 with the help of Data Envelopment Analysis (DEA) model.The study reveals that the banks, on an average, could have saved 7.2 per cent of actual cost incurred. Corporation Bank has been found to be the most cost efficient bank,whereas United Bank of India has proved to be most inconsistently cost inefficient bank during the study period. Further, the study has also investigated the influence of select factors on cost efficiency. The study concludes that higher capitalisation, poor asset quality and higher volume of liquid assets adversely affect cost efficiency of the banks. On the other hand, business per employee, off-balance sheet exposure, profitability, size and market competition positively affect cost efficiency of the banks. However, the influence of size and market competition is not statistically significant.

Keywords

DEA, Capital Adequacy, Asset Quality, Liquidity, Off-Balance Sheet Exposure.
User
Notifications
Font Size