SCALE ECONOMIES AND RETURNS TO SCALE IN LARGE VERSUS SMALL BANKS: A DEA APPROACH

Abstract

This paper envisages to study the scale efficiency and returns to scale during 2007-2014. For appraising the efficiency DEA model is employed. Banking Experts all over the world used DEA model to assess the performance of commercial banks in order to bring out performance variances, if any, which are working under the same ownership, economic, regulatory and market conditions. This study carried out based on the Indian commercial banks from the three categories, such as SBI group, public sector banks and Private sector banks. The appropriate data were collected from the RBI data base and various journals. Scale efficiency scores and RTS values were calculated through intermediation approach of DEA and the results were analysed. The estimated results were presented in every part and conclusion of the study.