Efficiency of Indian Banks with Non-Performing Assets as Undesirable Outputs

Title

Efficiency of Indian Banks with Non-Performing Assets as Undesirable Outputs

Creator

Subramanyam T.; Zalki M.; Satish Kumar V.; Amalanathan S.

Description

The performance evaluation of any banks is of utmost importance for bank management, investors, and policymakers. Due to globalization, all the banks are working in a competitive environment. Several risk factors affect the operational efficiency of banking system. This study aims to evaluate the efficiency of Indian banks with NPAs as uncontrolled variables. Due to the nature of NPAs, these are assumed as undesirable outputs in the DEA modelling. The results reveal that public sector banks experienced more input losses due to NPAs compared to private banks. The private banks experienced more loss in inputs due to the scale of operation. The Wilcoxon Signed-Rank test shown that the impact of NPAs and scale of operation are statistically significant at 0.05 level. 2023 American Institute of Physics Inc.. All rights reserved.

Source

AIP Conference Proceedings, Vol-2649

Date

2023-01-01

Publisher

American Institute of Physics Inc.

Subject

Data Envelopment Analysis; efficiency; Indian Banks; Non-performing assets; Undesirable output

Coverage

Subramanyam T., Department of Mathematics and Statistics, M.S. Ramaiah University of Applied Sciences, Bangalore, India; Zalki M., Department of Mathematics, REVA University, Bangalore, India; Satish Kumar V., Department of Computer Science, East Point College of Higher Education, Bangalore, India; Amalanathan S., Department of Business and Management, Christ University, Bangalore, India

Rights

Restricted Access

Relation

ISSN: 0094243X; ISBN: 978-073544553-6

Format

Online

Language

English

Type

Conference paper

Identifier

https://doi.org/10.1063/5.0114283

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85166400116&doi=10.1063%2f5.0114283&partnerID=40&md5=a0de9486772e33fe186b966845741884