ABSTRACT
Productivity and efficiency are the key drivers of any organization in a globally connected world with a matrix of challenges and opportunities. Banks are not merely business entities, accepting deposits and lending them to different sectors of the economy, but they represent the confidence of depositors, with shareholders assuming the role of authority to utilize their liquidity efficiently. So, it is a matter of urgency for banking institutions to efficiently channel their resources to the best possible advantage on behalf of their depositors and shareholders. The optimum utilization of resources necessitates regular evaluation of different decision-making units of any organization that deals with the same kind of business and pinpointing of those units that are failing to maintain a due level of operational efficiency. With the rising scope of operational research in recent times, regular assessment of the productivity of an organization has become a core issue for the managerial decision-making hierarchy. This chapter throws light on the efficiency level of banking sector decision-making units using different components of the data envelopment analysis (DEA) technique and theh objectivity of the Malmquist approach, which is designed to measure total productivity of business entities engaged in similar kinds of decision-making activities. The core objective of this research study was to measure changes in efficiency levels of these Indian banking sector organizations and their efficiency together with their technical efficiency responsiveness to recent period paradigm tweaks in domestic and global events.
