Bangladesh Bank Training Academy Journal

Abstract

There are mainly three types of Deposit Money Banks (DMBs) operating in Bangladesh, such as; Nationalized Commercial Banks (NCBs), Private Commercial Banks (PCBs) and Foreign Commercial Banks (FCBs). Among the DMBs four NCBs have been selected to compare their performances. The main objective of this study is to find out most efficient banks and how much inefficient the other banks are compared to most efficient banks. In the present study Data Envelopment Analysis (DEA) technique has been applied which is nonparametric in nature. Input oriented three models namely, Constant Returns to Scale (CRS), Variable returns to Scale (VRS) and Cost Efficiency DEA have been applied. In each of the models attempts have been made to work out Technical Efficiency (TE), Scale Efficiency (SE), Allocative Efficiency (AE) and Cost Efficiency (CE) of each bank separately. After applying these measures Agrani bank has been found as the most efficient bank and Somali bank has been found as the least efficient bank during the period of study.