Measuring bank performance: an application of DEA

Abstract

The current paper is an attempt to use Data envelopment analysis (DEA) to evaluate the relative performance of public sector banks in India. The DEA model is most meaningful when it is applied to observation sets of units or organizations providing similar services and using similar resources. An attempt has been made here to evaluate the banks on five indicators: Profitability, Financial management, Growth, Productivity and Liquidity.