Authors :
Subramanyam T; Madhusudhan Zalki
Volume/Issue :
Volume 7 - 2022, Issue 12 - December
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3C0AHa1
DOI :
https://doi.org/10.5281/zenodo.7478956
Abstract :
This study attempted to evaluate the efficiency
of Indian commercial banks working on Indian soil. The
working environment of a bank may affect due to internal
and external factors. The nonperforming assets ratio (Net
NPAs/Net Advances) is an indicator variable used to
measure the effect of internal and external factors. This
study proposed environmental DEA models to assess the
impact of internal and external factors and scale
inefficiency. The results have shown that the effect of the
NPA ratio is statistically significant on the efficiency of
public and private sector banks. The study reveals that
the proposed environmental DEA models accounted for
the risk efficiency. Also, these environmental DEA models
effectively controlled the spread of the efficiency scores.
Overall the public and private sector banks improved
their efficiency scores after eliminating the risk and scale
inefficiencies.
Keywords :
Environmental DEA Models, Risk Efficiency, Bank Efficiency, Nonperforming Assets, Scale Inefficiency, Environmental Efficiency.
This study attempted to evaluate the efficiency
of Indian commercial banks working on Indian soil. The
working environment of a bank may affect due to internal
and external factors. The nonperforming assets ratio (Net
NPAs/Net Advances) is an indicator variable used to
measure the effect of internal and external factors. This
study proposed environmental DEA models to assess the
impact of internal and external factors and scale
inefficiency. The results have shown that the effect of the
NPA ratio is statistically significant on the efficiency of
public and private sector banks. The study reveals that
the proposed environmental DEA models accounted for
the risk efficiency. Also, these environmental DEA models
effectively controlled the spread of the efficiency scores.
Overall the public and private sector banks improved
their efficiency scores after eliminating the risk and scale
inefficiencies.
Keywords :
Environmental DEA Models, Risk Efficiency, Bank Efficiency, Nonperforming Assets, Scale Inefficiency, Environmental Efficiency.
