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Using the cross-section data for the financial year 2008/09, this paper look for the answer of the research question: how efficient are public sector banks in India? The increasingly popular technique of Data Envelopment Analysis (DEA) has been used to compute the efficiency scores for individual PSBs. The empirical findings reveal that PSBs are their outputs with high level of efficiency which is reflected by the mean efficiency score of 0.890. IDBI bank is the most efficient bank, operating in Indian public sector banking industry. The banks with lesser priority sector advances and more income from non-traditional activities are found to be more efficient.
