Human Resource Performance in Indian Banks: Some DEA Evidence

The present paper aims at evaluating the performance of 26 Public Sector Banks (PSBs) operating in India by using one-stage performance evaluation model on the basis of Human Resource Deployment (HRD). Data Envelopment Analysis (DEA) is employed for computing the efficiency scores for individual PSBs using the cross-sectional data for the financial year 2009-10. The overall performance is derived based on the variable returns to scale technical efficiency scores. The empirical results uphold positive association between HRD and banks’ performance. Further, the study reveals that on the efficiency front, Corporation Bank, Indian Bank, State Bank of Bikaner and Jaipur and State Bank of Mysore performed well. Corporation Bank seems to set the benchmark. It is recommended that Indian PSBs should pay more attention to proper deployment of human resources to improve their overall performance.