Data envelopment analysis:Evaluating the relative efficiency of Public sector Banks in India

This paper implements a Data Envelopment Analysis (DEA) approach to measure the relative performance of public sector banks in India for the period of 2013. In this study 20 Banks, each with 4 inputs and 3 outputs are considered. Each banks is identified as Decision making Unit (DMU).Bankers, Charnes, Cooper method, which admits VRS has applied here to compute efficiency score for each bank. Efficient banks whose Technical Efficiency (TE) scores is unity and inefficient banks whose Technical Efficiency scores less than unity has identified. The researcher also suggested the target for inefficient banks to attain efficiency.