EVALUATING THE PERFORMANCE EFFICIENCY OF FOREIGN BANKS OPERATING IN INDIA: A DEA APPROACH
Publication Date : 01/09/2018
The efficient financial system leads to better economic development of a country because an efficient financial system guarantees the smooth functioning of country’s payment system and effective implementation of monetary policy. The literature analyzing efficiency of banking system has increased rapidly over the last years. Data Envelopment Analysis (DEA) is a non-parametric approach which is widely used to measure the efficiency of financial institutions. Most studies only focus on Input side of /Technical efficiency. Only few studies have measure the output side evaluating pure technical and scale efficiency. We know that both input and output oriented efficiency is important. So the Primary aim of this paper is to evaluate the efficiency of foreign banks operating in India for the period of 2010-2017. The preset study is confined to both constant return to scale (CRS) and variable return to scale (VRS).For DEA analysis the inputs selected as interest expense and other expense while output selected as interest income and other income.
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