International Journal in Management & Social Science
  • Year: 2016
  • Volume: 4
  • Issue: 3

Performance Analysis of Indian Public Sector Banks based on Their Investment Level

  • Author:
  • P. Mariappan
  • Total Page Count: 23
  • Page Number: 83 to 105

Associate professor in mathematics, Bishop Heber College, Trichy-620 017, Tamilnadu, India

Online published on 4 August, 2018.

Abstract

The objective of the research study is to investigate and analyze the operation efficiency of the Public Sector Banks of India based on their investment individually and identify the best performing Bank.

For this survey, researchers collected data on the Public Sector Banks for the financial years 2004–2015 from the official websites of individually them considering six input and four output variables. The Data envelopment Analysis [DEA] technique has been employed; BCG Matrix [Efficiency with ROI] and GE McKinsey matrix [Efficiency with ROI] for same.

Our Study reveals that as per the analysis of DEA:

Bank of Baroda secures the top position in high Investment

Andhra Bank and Vijaya Bank secure first position in low investment.

BCG Matrix:

Bank of Baroda, Canara Bank, Central Bank of India, IOB, Oriental Bank of Commerce, PNB and Bank of India in the high investment group lies in high profitability as well as high efficiency quadrants.

According to low investment, Andhra Bank, Bank of Mahasatra, Syndicate Bank and UCO Bank lies in high profitability as well as high efficiency quadrants.

McKinsey Matrix:

In High investment group, Bank of Baroda lies on MH [Medium Quadrant]

Andhra Bank and Syndicate Bank are those Banks lies on MH [Medium Quadrant]. By combining all the analysis, the researcher identifies that in the Public Sector Bank, namely Bank of Baroda is functioning effectively based on high investment. In case of Low investment, Andhra Bank is performing good.

Keywords

Data Envelopment Analysis, BCG Matrix, McKinsey Matrix, Efficiency