SAARJ Journal on Banking & Insurance Research
  • Year: 2017
  • Volume: 6
  • Issue: 1

Efficiency of foreign banks in India – mathematical models analysis

*Post Doctoral Fellow, Department of Statistics, S.V. University, Tirupati, India

**Professor, Department of Statistics, S.V. University, Tirupati, India

***Research Scholar, Department of Statistics, S.V. University, Tirupati, India

Online published on 27 January, 2017.

Abstract

Linear Programming models like Charnes, Cooper, Rhodes (CCR) and Banker, Charnes, Cooper (BCC) models in Mathematics are very useful to measure the efficiency of public and private sector organisations. These organisations are termed as Decision Making Units (DMUs). By using CCR and BCC models, we measure the different types of efficiencies of organisations like Overall Technical Efficiency (OTE), Pure Technical Efficiency (PTE), Scale Efficiency (SE) and Technical Efficiency (TE). The efficiency is calculated for cent percent or unity score. If any organisation getting efficiency cent percent or unity score, that organisation is 100% efficient. The main aim of the present research study is to measure the Overall Technical Efficiency (OTE) of foreign banks in India up to March 2013 by the analysis of Mathematical models like CCR and BCC linear programming models.

Keywords

Overall Technical Efficiency, DMUs, Mathematical models