Scale Efficiency: An Empirical Study of Public and Private Sector Banks in India

In the present study attempt is made to analyse the scale efficiency of public and private sector banks under the constant return to scale assumption. Scale efficiency is defined as the ratio of technical efficiency (CRS) to the technical efficiency (VRS). DEA (Data Envelopment Analysis) model is used for the purpose of doing analysis. Among the two approaches production approach and intermediation approach, intermediation approach is applied in the study. In the intermediation approach the exact set of inputs and outputs variables depends upon the availability of data.