A Fuzzy DEA Approach for Effectively Measuring the Efficiency of Indian Banks

A Fuzzy DEA Approach for Effectively Measuring the Efficiency of Indian Banks
Author: Manoj Kumar
Publisher:
Total Pages:
Release: 2015
Genre:
ISBN:

Data Envelopment Analysis (DEA) is widely applied in evaluating the efficiency of banks since it is a method capable of evaluating the efficiency of decision-making units in utilizing multiple inputs to produce multiple outputs. However, some outputs of banks, in fact, possess fuzzy characteristics, while conventional DEA approach can only assess efficiency with a crisp value and is unable to evaluate imprecise data. Theoretically, the fuzzy DEA approach can evaluate banks' efficiency more realistically and accurately since it can take the fuzzy characteristics of inputs and/or outputs into consideration. This study adopts 48 Indian commercial banks as an empirical example to demonstrate the feasibility and the effectiveness in our proposed fuzzy DEA. The results show that the fuzzy DEA approach could not only effectively characterize uncertainty, but may also have a higher capability to discriminate banks' efficiency than the conventional DEA approach.

Measurement of Efficiency of Banks in India

Measurement of Efficiency of Banks in India
Author: Parida Tapas Kumar
Publisher: LAP Lambert Academic Publishing
Total Pages: 156
Release: 2014-01
Genre:
ISBN: 9783659458613

Banking has experienced dramatic changes over the last decade. Deregulation, financial innovation and automation have been major forces impacting on the performance of the banking sector. In this context banks are become increasingly concerned about controlling & analyzing these costs & revenues, as well as measuring the risks taken to produce acceptable norms. Till now, the performance of banks has become a major concern of planners and policy makers in India.This book will give an insight to the operation of Indian Banks after the liberalization period.The efficiency scores are being measured through Data Envelopment Analysis technique.

An Innovative Method to Measure the Efficiency of Indian Commercial Banks - DEA Approach

An Innovative Method to Measure the Efficiency of Indian Commercial Banks - DEA Approach
Author: Subramanyam T
Publisher:
Total Pages: 0
Release: 2023
Genre:
ISBN:

This study proposes a three stage data envelopment analysis model to assess the efficiency of Indian commercial banks. 65 commercial banks comprising public, private and foreign sector banks were evaluated. This study proposed a new methodology to evaluate the efficiency of banks. The performance indicator variable NPA has been used to identify the environment of a bank. The overall technical efficiency is decomposed to scale, environmental risk and pure technical efficiency. The empirical results reveal that public sector banks hurt more from environmental risk inefficiency.

Deregulation and Efficiency of Indian Banks

Deregulation and Efficiency of Indian Banks
Author: Sunil Kumar
Publisher: Springer Science & Business Media
Total Pages: 340
Release: 2013-10-23
Genre: Business & Economics
ISBN: 8132215451

​ The goal of this book is to assess the efficacy of India’s financial deregulation programme by analyzing the developments in cost efficiency and total factor productivity growth across different ownership types and size classes in the banking sector over the post-deregulation years. The work also gauges the impact of inclusion or exclusion of a proxy for non-traditional activities on the cost efficiency estimates for Indian banks, and ranking of distinct ownership groups. It also investigates the hitherto neglected aspect of the nature of returns-to-scale in the Indian banking industry. In addition, the work explores the key bank-specific factors that explain the inter-bank variations in efficiency and productivity growth. Overall, the empirical results of this work allow us to ascertain whether the gradualist approach to reforming the banking system in a developing economy like India has yielded the most significant policy goal of achieving efficiency and productivity gains. The authors believe that the findings of this book could give useful policy directions and suggestions to other developing economies that have embarked on a deregulation path or are contemplating doing so.

Data Envelopment Analysis in the Financial Services Industry

Data Envelopment Analysis in the Financial Services Industry
Author: Joseph C. Paradi
Publisher: Springer
Total Pages: 379
Release: 2017-11-21
Genre: Business & Economics
ISBN: 3319697250

This book presents the methodology and applications of Data Envelopment Analysis (DEA) in measuring productivity, efficiency and effectiveness in Financial Services firms such as banks, bank branches, stock markets, pension funds, mutual funds, insurance firms, credit unions, risk tolerance, and corporate failure prediction. Financial service DEA research includes banking; insurance businesses; hedge, pension and mutual funds; and credit unions. Significant business transactions among financial service organizations such as bank mergers and acquisitions and valuation of IPOs have also been the focus of DEA research. The book looks at the range of DEA uses for financial services by presenting prior studies, examining the current capabilities reflected in the most recent research, and projecting future new uses of DEA in finance related applications.

Performance Measurement with Fuzzy Data Envelopment Analysis

Performance Measurement with Fuzzy Data Envelopment Analysis
Author: Ali Emrouznejad
Publisher: Springer
Total Pages: 288
Release: 2013-12-04
Genre: Computers
ISBN: 9783642413735

The intensity of global competition and ever-increasing economic uncertainties has led organizations to search for more efficient and effective ways to manage their business operations. Data envelopment analysis (DEA) has been widely used as a conceptually simple yet powerful tool for evaluating organizational productivity and performance. Fuzzy DEA (FDEA) is a promising extension of the conventional DEA proposed for dealing with imprecise and ambiguous data in performance measurement problems. This book is the first volume in the literature to present the state-of-the-art developments and applications of FDEA. It is designed for students, educators, researchers, consultants and practicing managers in business, industry, and government with a basic understanding of the DEA and fuzzy logic concepts.

A Non-Parametric Approach to Estimate Profit Efficiency of Indian Banks

A Non-Parametric Approach to Estimate Profit Efficiency of Indian Banks
Author: Piyush Kumar Singh
Publisher:
Total Pages: 19
Release: 2017
Genre:
ISBN:

This study attempts to analyse the profit efficiency of Indian banks during 2008-2012 to offer an understanding of their business performance and trends during the period. The extant literature suggests that conventional ratio-based performance measures are inadequate to address the different issues related to the scope of activities of modern banking, viz. resource allocation, optimal strategy selection, inefficiencies associated with revenue side of banking operations. Sophisticated performance measurement techniques would be required to provide useful insights about the effectiveness, efficiency and stability of the banks. Hence, to examine the importance of these aspects for Indian banks, this study employs non parametric approach to estimate profit efficiencies of Indian banks. We use Data Envelopment Analysis (DEA), a non-parametric, mathematical programming technique, to estimate profit efficiency (PE) of 66 Indian banks (26 public, 19 private and 21 foreign banks). Profit efficiency is estimated by employing DEA at variable returns of scale (VRS). The study reinforces the use of DEA for measurement of the profit efficiency of Indian banks to get better insight about the banking operations. The study reports that large public, private and foreign sector banks were more profit efficient than small and medium banks in their respective groups. The outcomes point towards different ways of managing bank resources for improving efficiency of operations in terms of both input (cost) and output (revenue).

Data Envelopment Analysis and Effective Performance Assessment

Data Envelopment Analysis and Effective Performance Assessment
Author: Lotfi, Farhad Hossein Zadeh
Publisher: IGI Global
Total Pages: 375
Release: 2016-09-01
Genre: Computers
ISBN: 1522505970

For any organization, analysis of performance and effectiveness through available data allows for informed decision making. Data envelopment analysis, or DEA, is a popular, effective method that can be used to measure productive efficiency in operations management assessment. Data Envelopment Analysis and Effective Performance Assessment addresses the myriad of practical uses and innovative developments of DEA. Emphasizing the importance of analyzing productivity by measuring inputs, goals, economic growth, and performance, this book covers a wide breadth of innovative knowledge. This book is essential reading for managers, business professionals, students of business and ICT, and computer engineers.

Advanced Robust and Nonparametric Methods in Efficiency Analysis

Advanced Robust and Nonparametric Methods in Efficiency Analysis
Author: Cinzia Daraio
Publisher: Springer Science & Business Media
Total Pages: 263
Release: 2007-04-10
Genre: Business & Economics
ISBN: 0387352317

Providing a systematic and comprehensive treatment of recent developments in efficiency analysis, this book makes available an intuitive yet rigorous presentation of advanced nonparametric and robust methods, with applications for the analysis of economies of scale and scope, trade-offs in production and service activities, and explanations of efficiency differentials.

An Empirical Study to Compute the Efficiency of Indian Banks During the Pre and Post Periods of Recession with the Help of Data Envelopment Analysis

An Empirical Study to Compute the Efficiency of Indian Banks During the Pre and Post Periods of Recession with the Help of Data Envelopment Analysis
Author: Arindam Banerjee
Publisher:
Total Pages:
Release: 2019
Genre:
ISBN:

The present study was undertaken to measure the efficiency of Indian commercial banks during the pre and post periods of the recent global recession. Data envelopment analysis (DEA) as an operation research technique was utilized to measure the efficiency of commercial banks in the Indian scenario. Input oriented variable return to scale approach was used in this study. Linear program was formulated to compute the efficiency and super efficiency scores of different commercial banks. The banks were ranked according to the scores obtained by them during the period of the study. The pre recession period was taken from 2001-2002 to 2006-2007 and the post recession period was considered from 2007-2008 to 2012-2013. Further endeavor was made in this study to understand if there was a significant difference between the ranks obtained by commercial banks during pre and post periods of recession by utilizing Spearman's rank correlation. It was concluded from the study that recession had a little impact on the performance of Indian commercial banks in general, though private sector banks were able to fare better than their public sector counterparts during the post recession period as compared to the pre recession period.