Efficiency of Banks in India:A DEA Approach

Measuring Bank efficiency has always been an important concern for policy makers and researchers. An understanding of a bank's relative efficiency is important for analysts, practitioners and policymakers alike. The objective of this paper was to measure the operational efficiencies of Indian commercial banks. In this paper, we analyze bank efficiency in India using Data Envelopment Analysis (DEA). We found that foreign-owned banks are on an average most efficient, that the new generation banks are more efficient than the old ones The study recommend that the Indian nationalized and private sector banks are required to put more efforts to enhance their operational efficiencies.