Title: Social welfare through Mudra Yojana: how did the public sector banks perform in realising the dream?

Authors: Tarak Nath Sahu; Varuna Agarwala; Sudarshan Maity

Addresses: Department of Commerce, Vidyasagar University, Midnapore – 721102, West Bengal, India ' Department of Commerce, Vidyasagar University, Midnapore – 721102, West Bengal, India ' The Institute of Cost Accountants of India, 12, Sudder Street, Kolkata – 700016, West Bengal, India

Abstract: The Pradhan Mantri Mudra Yojana, launched in 2015, grants collateral-free loans to the unfunded by collaborating with the financial institutions. Using data envelopment analysis, the present study investigates the efficiency of 20 public sector banks, specifically, to interpret its performance in providing loans to micro-entrepreneurs under the three categories of Shishu, Kishore and Tarun over 2015-2016 to 2018-2019. The study finds four banks as technically efficient and among the inefficient banks four banks marginally inefficient. Though the results indicate that the banks have performed moderately well, the public sector banks still have the scope of delivering 1.2514 times of output by employing the same input quantity. The success of the scheme highly depends on the competency of financial institutions. Several business houses depend on banks for credit and other services. Regular efficiency measurement would help in early detection of errors and in enforcing steps to lessen the incidence of problems.

Keywords: Mudra Yojana; public sector bank; PSB; data envelopment analysis; DEA; technical efficiency.

DOI: 10.1504/IJBEX.2023.134850

International Journal of Business Excellence, 2023 Vol.31 No.3, pp.450 - 467

Received: 21 Jul 2020
Accepted: 04 Dec 2020
Published online: 14 Nov 2023 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article