Efficiency and Risk Management in Indian Banks: A Method to Decompose the Risk
Abstract
A four-stage DEA model proposed to measure the efficiency of Indian commercial banks working in Indian soil. The proposed models have been used to measure and remove the risk efficiency from the overall technical efficiency (OTE). The OTE of all the banks working in Indian soil is calculated by the Data Envelopment Analysis Models. The performance indicator variable, non-performing assets, has been used to identify the homogeneous working environment of the banks. The pure technical efficiency is calculated by disentangling the risk factors in different stages. The overall performance of public sector banks is better after removing the risk inefficiency compared to other sector banks.
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Keywords: Environmental Dea, Risk Factors In Banks, Risk Efficiency Of Banks, Indian Banks Efficiency, Non-Performing Assets.
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