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Efficiency Of Urban Cooperative Banks Of Maharashtra: A Dea Analysis

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Author Info
Geeta Sharma
Ganesh Kawadia
Abstract

The cooperative banking sector in India has received a series of shocks in recent years, resulting in a significant number of bank failures and upsurge in bank merger activities, both voluntary and arranged by RBI. The major legislative and regulatory changes raise a number of important questions about the sector, and issues of bank efficiency become more important as inefficient banks may not survive long. Survival and success in competitive markets demand performance through continuous improvement and learning. Against this backdrop, this paper analyzes and measures the performance and efficiency of the Urban Cooperative Banks (UCBs) of Maharashtra, using Data Envelopment Analysis (DEA), a model that helps to determine the relative efficiency among competing banks, on the basis of their numerical efficiency score. The author also attempts to identify and examine the relationship between size and efficiency of UCBs. However, the scope of efficiency is limited to technical efficiency only.

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Publisher Info
Article provided by Icfai Press in its journal The Icfai University Journal of Bank Management.

Volume (Year): V (2006)
Issue (Month): 4 (November)
Pages: 25-38
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Handle: RePEc:icf:icfjbm:v:5:y:2006:i:4:p:25-38

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