A Data Envelopment Analysis of Banks Performance

Hadis Sepahvand¹ Mohammad Sadeq Horri² Farshad Motallebi³

1) M.A. Student, Department of Industrial Engineering, Arak Branch, Islamic Azad University, Markazi, Iran
2) Assistant Professor, Department of Industrial Engineering, Arak Branch, Islamic Azad University, Markazi, Iran
3) Assistant Professor, Department of Industrial Engineering, Arak Branch, Islamic Azad University, Markazi, Iran

Publication : 3rd international conference of Science and Engineering(3icesconf.com)
Abstract :
This study applies Data Envelopment Analysis (DEA) under the input oriented CCR, BCC model, constant returns to scale (CRS) and variable returns to scale (VRS) assumptions to measure the Relative efficiency, Pure technical efficiency, Scale inefficiency and analysis of reference groups for 17 Branch of one of the governmental banks of Iran (Khoram’abad city). Fixed assets, Number of Personnel’s and total deposits were used as the input variables while total loans and investments were used as the output variables. Empirical results shown that Vali-Asr Branch was the most effective branch in its industry with CRS assumption. The analysis also revealed that Khoramabad, Sang Nebeshteh, Poshteh, Enghelab, Dareh Garm, Vali- ASR, Daneshgah, Shohada, Hafez and Dureh Branches had Pure Technical Efficiency with VRS assumption. The branches of Khoramabad, Sang Nebeshteh, Enghelab, Vali ASR and Shohada had Scale efficiency. This indicates that theses branches did have the optimal performance volume.
Keywords : Performance Evaluation Efficiency DEA Khoram’abad