TWO STAGE DATA ENVELOPMENT ANALYSIS�INDIAN PUBLIC SECTOR BANKS PERFORMANCE

A.Madhavi; C. Subbarami Reddy

Volume : VI, Issue : IX, September - 2016

TWO STAGE DATA ENVELOPMENT ANALYSIS�INDIAN PUBLIC SECTOR BANKS PERFORMANCE

A. Madhavi, C. Subbarami Reddy

Abstract :

In India the financial sector is dominated by the Commercial Banks‘ activities. The public sector banks account for 73 per cent of Commercial Banks‘ business. PSBs net work is found wide spread in rural India. This study aimed to explain inter bank efficiency differences of PSBs based on the secondary data published by the Reserve Bank of India (2016). For PSBs it is found that pure technical efficiency is positively related to the bank size. Put together the sector of Public Banks is scale efficient. The most robust bank is State Bank of India. Due to infeasibility in BCC–Super efficiency problems to rank the efficient banks it is suggested that the predicted probabilities, P y 1/z ( = ) may be used.