Abstract:

Banking is perhaps the oldest and the most important sector in the economy of a country. Performance of banks and their efficiency directly affects the economic scenario in a country. The process of establishing a competitive advantage is at the heart of competitive marketing strategy (Devlin, 1997). Therefore studies in this area are important to industry leaders, policy makers and academia. Banking performance has been studied and analyzed and had attracted researchers throughout the world in the recent years. The main reason for continued interest in this area of research is the ever changing banking business environment throughout the world. This paper also aims at measuring and comparing the financial performance of banks in India. It attempts to identify the relatively best performing banks and relatively worst performing banks on selected parameters. The data envelopment analysis (DEA) methodology has been used to measure the efficiency.