1Assistant Professor, University School of Financial Studies, Guru Nanak Dev University, Amritsar, aparnamohindru@yahoo.co.in
2Assistant Professor, Department of Commerce and Business Administration, Khalsa College, Amritsar, mahendru.megha30@gmail.com
Online published on 15 February, 2019.
The aim of the paper is to analyze and evaluate Revenue Efficiency scores of Indian Scheduled Commercial Banks (SCBs) in India over a period of 22 years i.e., 1991–92 to 2012–13 by the application of Data Envelopment Analysis (DEA)-a non-Parametric Approach. The paper also identifies the reason for the Revenue Inefficiency among Indian Banks. In addition, the Return to Scale at which the Scheduled Commercial Banks are operating has also been evaluated. The results of the paper depict that Indian Scheduled Commercial Banks have never achieved full Revenue Efficiency score of 1 in any of the years under study. The dominant reason identified behind Revenue Inefficiency is the Allocative Inefficiency. Surprisingly, the results also highlight that Scheduled Commercial Banks (SCBs) in India exhibit higher Revenue Efficiency Scores in Reformatory Phase as compared to the Post Reformatory Phase.
Revenue efficiency, allocative efficiency, return to scale, data envelopment analysis, India
