Strategic grouping of Indian Public Sector Banks (PSBS): service quality and financial performance

Financial industry in a developing country like India is undergoing through a very dynamic pace of restructuring; it is imperative for any bank to continuously monitor their efficiency by keeping pertinent issues like Non-Performing Assets, Capital Risk-Weighted Asset Ratio, Business per Employee, Return on Assets (RoA) and Profit per Employee. Apart from above, again Indian Public Sector Banks (PSBs) are in a critical juncture due to different issues like resource management, service quality, operational and financial efficiency. In this sequel, the aim of this study is to inspect benchmarking of all PSBs on the basis of service quality and relative efficiency under multi criteria decision-making platform by using statistical and linear programming approach. Non-Performing assets, here, are considered as a negative financial indicator. To prove empirically, researcher propose a conceptual framework of resources, service quality and financial performance to measure relative efficiency of Indian public sector banks by using Data Envelopment Analysis. Multidimensional co-plot analyses are used here for all PSBs to group them on the basis of service quality and performances. Results indicate a very interesting result

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