Performance evaluation of banking sector in India is assuming greater significance in view of intense competition, greater customer demands and changing banking reforms. This study attempts to analyze comparative performance of select Indian banks during the period 1997–2004 using output-oriented CRR DEA model. In this study segmentation of banking sector in India was done in terms of bank assets size, ownership status and years of operation. The study arrives at the conclusion that foreign owned banks are in general most efficient and among other banks ‘new banks’ are more efficient than old ones, which are burdened with old debts. In terms of size, whereas smaller banks are globally efficient, but large banks are locally efficient. Moreover, this study also concluded evidence of presence of concentration of efficiency parameters among peer bank groups.
