An Inefficient Urban Co-operative Credit Societies Moving towards Efficiency Frontier – D.E.A. Approach

Abstract

This paper entitled “An Inefficient urban co-operative credit societies moving towards efficiency frontier –D.E.A. Approach” attempts to measure the efficiency and identify & improve input /output slack of inefficient societies to plot them on efficiency curve by employing Data Envelopment Analysis (D.E.A.) technique. To measure the efficiency of UCCSs operating in the state of Goa, four input variables namely: owned funds, employee cost, interest expenses, and non-interest are selected. The study also considered five output variables namely: interest revenue, other revenue, loan & advances, investments and deposit. The analysis reveals that only ten UCCSs were efficient in terms of constant returns to the scale, variable returns to the scale and scalers efficiency for the period under study. The study identifies that two DMUs out of 30 UCCSs under study consideration have input as well as output slack. Analysis also divulges that one DMU has only output slack during terminal year. Further, study indorses that all inefficient DMUs can maintain its output at same level by reducing inputs if to be on efficient curve.