A Study on the Financial Outcome of Selected Indian Public Sector Banks: A Data Envelopment Analysis (DEA) Approach

Abstract

The effective functioning of a nation’s financial system with banks as primary institutions is crucial for economic development. To assess the efficiency of public sector banks, this study has selected a sample of ten banks out of a total of twelve banks based on market capitalization. Data Envelopment Analysis (DEA) utilizing the CRR model has been employed for assessing efficiency. This study employed input variables such as revenue, expenses, net income, total assets, and liabilities. Conversely, Return on Assets is employed as the output variable. The study's findings suggest that the State Bank of India is the most efficient bank, while UCO bank is the least efficient. The ANOVA analysis indicated a lack of significant variation among the means of the selected public sector banks used in the DEA study.