Article: Efficiency evaluation of state cooperative banks employing data envelopment analysis and neural network technique Journal: International Journal of Business Process Integration and Management (IJBPIM) 2024 Vol.11 No.3 pp.179 - 185 Abstract: India is one of the fastest-growing economies in the world. Banks have played an important role in this growth and are a critical aspect of the future as well. The banking sector is undergoing tremendous change nowadays to meet the need of the hour. Cooperative and commercial banks are the two major categories of banks. The cooperative banks, in spite of a very small market shares are likely to play an increasingly important role in the future keeping in mind their ability to ensure broader financial inclusion. In this paper, the authors have designed a model employing data envelopment analysis (DEA) for state cooperative banks (StCBs). An input-oriented model was used and both constant returns to scale (CRS) and variable returns to scale (VRS), runs of the model were used to determine efficiencies and rank these banks. Maharashtra State Cooperative Bank emerged as the only efficient bank under the VRS run and Gujarat State Cooperative Bank showed highest score of 0.982 under the CRS run of the DEA model. The model is validated using the neural network technique with an accuracy of 93.5% for 70-30 ratio and an overall R-value of 0.944. Inderscience Publishers - linking academia, business and industry through research

Title: Efficiency evaluation of state cooperative banks employing data envelopment analysis and neural network technique

Authors: Triambica Gautam; Amit Srivastava; Shruti Jain

Addresses: Department of Humanities and Social Sciences, Jaypee University of Information Technology, Solan, Himachal Pradesh, India ' Department of Humanities and Social Sciences, Jaypee University of Information Technology, Solan, Himachal Pradesh, India ' Department of Electronics and Communication Engineering, Jaypee University of Information Technology, Solan, Himachal Pradesh, India

Abstract: India is one of the fastest-growing economies in the world. Banks have played an important role in this growth and are a critical aspect of the future as well. The banking sector is undergoing tremendous change nowadays to meet the need of the hour. Cooperative and commercial banks are the two major categories of banks. The cooperative banks, in spite of a very small market shares are likely to play an increasingly important role in the future keeping in mind their ability to ensure broader financial inclusion. In this paper, the authors have designed a model employing data envelopment analysis (DEA) for state cooperative banks (StCBs). An input-oriented model was used and both constant returns to scale (CRS) and variable returns to scale (VRS), runs of the model were used to determine efficiencies and rank these banks. Maharashtra State Cooperative Bank emerged as the only efficient bank under the VRS run and Gujarat State Cooperative Bank showed highest score of 0.982 under the CRS run of the DEA model. The model is validated using the neural network technique with an accuracy of 93.5% for 70-30 ratio and an overall R-value of 0.944.

Keywords: cooperative banks; data envelopment analysis; DEA: efficiency; neural network; input oriented.

DOI: 10.1504/IJBPIM.2024.140141

International Journal of Business Process Integration and Management, 2024 Vol.11 No.3, pp.179 - 185

Received: 27 Apr 2022
Accepted: 07 Feb 2023
Published online: 25 Jul 2024 *

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Title: Efficiency evaluation of state cooperative banks employing data envelopment analysis and neural network technique

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