Title: Prioritising the financial performance of Indian private sector banks by a hybrid MCDM approach

Authors: Pawan Kumar; Deergha Sharma

Addresses: The NorthCap University, Sector 23-A, Gurugram, Haryana, 122017, India ' The NorthCap University, Sector 23-A, Gurugram, Haryana, 122017, India

Abstract: The present study has proposed a hybrid multi-criteria decision-making (MCDM) approach to assess the financial performance of the nine largest private sector banks operating in India between 2015-2016 to 2020-2021. The assessment has applied CRITIC to ascertain the weights of eleven selected performance parameters and TOPSIS to compute the ranking of private sector banks. Interval-valued TOPSIS (IV-TOPSIS) has been employed to assess the performance for the combined six-year period. The analysis found that 'operating expenses to total assets' is the most critical of all the financial performance parameters, and 'Bandhan Bank' is the top performer among all the examined banks. The study results benchmarked the financial performance indicators and shall facilitate trailing institutions to improve their financial health. The study has provided inputs to bank management and policymakers to determine the financial standing of private sector banks and suggested the operational parameters indispensable for efficient performance.

Keywords: financial performance; CRITIC; TOPSIS; interval-valued TOPSIS; IV-TOPSIS; multi-criteria decision-making; MCDM; private sector banks; India.

DOI: 10.1504/IJPMB.2024.137145

International Journal of Process Management and Benchmarking, 2024 Vol.16 No.4, pp.490 - 511

Received: 03 Jan 2023
Accepted: 05 Jan 2023
Published online: 04 Mar 2024 *

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