Abstract
This study proposes data envelopment analysis models to identify and asses risk in Indian commercial banks. Risk is believed to surface due to external and internal factors, where the former cannot be controlled and the later can be controlled by the bank management. We assume that non performing assets (NPA) arise due to endogenous and exogenous risk. 63 commercial banks comprising public, private and foreign sectors exposed to common frontier production function are considered for performance evaluation. Due to exogenous risk inefficiency more inputs are lost in public sector than private and foreign sectors. More inputs are freely disposed off in private sector than public and foreign sector due to endogenous risk inefficiency. Private sector banks operate more distantly from optimal scale than the public and foreign sector banks.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
