SAARJ Journal on Banking & Insurance Research
Year : 2012, Volume : 1, Issue : 1
First page : ( 1) Last page : ( 15)
Print ISSN : 0000-0000. Online ISSN : 2319-1422.

Measuring efficiency of Pakistani banks with data envelopment analysis

Badar Munib, Dr. Javid Atiya Yasmin

Shaheed Zulfiquar Ali Bhutto Institute for Science and Technology (SZABIST), Islamabad.

Online published on 18 September, 2012.

Abstract

This study evaluates the individual and overall performance of commercial banking industry consists of 20 Pakistani banks posses almost 90% of the share in terms of deposits, advances, total assets, profitability and labor force divided into four group large, medium, small conventional and Islamic banks for the period which is characterized by slow economic growth and precarious macro economic indicators started from 2006 till 2010 by using non parametric technique Data Envelopment Analysis. Technical efficiency under CRS and VRS models and scale efficiency in respect of production and intermediation approaches are calculated. This study earmarks and reason out the most efficient and inefficient banks, overall performance which is seen under slow growth in commensurate with the economic growth. Where as, Islamic banking group is less efficient but flourishing significantly among all groups. Performance of large conventional banks is less affected with economic upheavals.

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