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A comparative study on performance measurement of Indian public sector banks using AHP-TOPSIS and AHP-grey relational analysis

Author

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  • Shivani Guru

    (Sambalpur University)

  • D. K. Mahalik

    (Sambalpur University)

Abstract

Banks are the financial intermediaries and important means for the advancement of economies. In the cutthroat competitions, the increase in market shares is a matter of concern for all. Banks are expected to increase their efficiency to boost competitive capacity, which also helps the Decision-maker to know about grey areas for development. Therefore, performance measurements of efficiency calculation, by using different methods are the concern for research across the world. This paper tries to use the combination of AHP, TOPSIS, and Grey Relational Analysis for efficiency calculation of different public sector banks in India and finally, results were compared. AHP is used to determine the weight criteria and Grey Relational Analysis and TOPSIS are used to rank the bank performances. The proposed method of this study used various inputs and outputs criteria which were taken from various banks annual reports. Descriptive statistics and correlation matrix were used to test the validity of the criteria. The findings reveal that banks which are considered as efficient are close to relative closeness to the ideal solution, expose an alternative ranking of the banks, present research also provides better insight to focus on the area of improvement in comparison to others banks. The Comparative result shows both models have the almost same interpretation. Little deviation in their ranks is due to methodological differences. The proposed research will provide a framework for further applications and both approaches will help decision maker of Indian Public sector banks to find optimal solutions to the complex problems by assessing various alternatives.

Suggested Citation

  • Shivani Guru & D. K. Mahalik, 2019. "A comparative study on performance measurement of Indian public sector banks using AHP-TOPSIS and AHP-grey relational analysis," OPSEARCH, Springer;Operational Research Society of India, vol. 56(4), pages 1213-1239, December.
    • Handle: RePEc:spr:opsear:v:56:y:2019:i:4:d:10.1007_s12597-019-00411-1
    DOI: 10.1007/s12597-019-00411-1
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    References listed on IDEAS

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    3. Ravindra Singh Saluja & Varinder Singh, 2023. "Attribute-based characterization, coding, and selection of joining processes using a novel MADM approach," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 616-655, June.
    4. Hailemariam Gebru & Baba Abdissa & Betelhem Addis & Sisay Alebachew & Abaysew Ayele, 2023. "Selection of conventional preservation technologies using analytical hierarchy process," OPSEARCH, Springer;Operational Research Society of India, vol. 60(1), pages 217-233, March.
    5. Huanhuan Zhao & Yunbo Yu & Sunping Qu & Yong Liu, 2022. "A Grey Incidence Based Group Decision-Making Approach and Its Application," Mathematics, MDPI, vol. 10(7), pages 1-13, March.
    6. Snežana Tadić & Mladen Krstić & Violeta Roso & Nikolina Brnjac, 2020. "Dry Port Terminal Location Selection by Applying the Hybrid Grey MCDM Model," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    7. Zhao, Laijun & Li, Deqiang & Guo, Xiaopeng & Xue, Jian & Wang, Chenchen & Sun, Wenjun, 2021. "Cooperation risk of oil and gas resources between China and the countries along the Belt and Road," Energy, Elsevier, vol. 227(C).

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