LAUSR

The main objective of this article is to evaluate the performance efficiency of the top 36 commercial banks in India. To evaluate the performance efficiency, we employ a two-stage production process. Applying the data envelopment analysis technique, this article evaluates profitability efficiency in the first stage and marketability efficiency in the second stage, respectively. Empirical findings reveal that in India where large banks perform well on profitability, small banks have done well on marketability efficiency. However, close to 80 per cent of Indian commercial banks are inefficient on both the fronts of profitability and marketability. Finally, an input congestion method has been used to examine the effect of outputs as a result of reduction in inputs. To the best of our knowledge, this article is the first of its kind that examines both profitability and marketability efficiencies in Indian context.