The study applies two-stage data envelopment analysis (DEA) and bootstrap to estimate the Profit Efficiency (PE) and its factors for Indian bank groups. Recognizing the heterogeneity in the bank sizes, we perform DEA to estimate PE for small, medium, and large banks across different ownership....

Many prior studies on Indian banking efficiency have typically regressed non-parametric estimates of production efficiency on environmental variables in a two-stage process. However, Simar and Wilson (2007) have demonstrated that the studies that use such conventional approaches are invalid due...