A Comparative Approach of DEA ? AHP for Performance Measurement of Indian Banks

Data envelopment analysis (DEA) is a methodology for measuring the relative efficiencies of a set of decision making units (DMUs) that use multiple inputs to produce multiple outputs. The main purpose of the study is to provide decision support for decision makers about the performance of banks by using multi criteria decision making techniques. In this paper, we investigate the efficiency of Nationalised Indian banks using Data Envelopment Analysis and Analytic Hierarchy Process (AHP) approach. In this study, we apply the DEA and AHP model for measuring the efficiency scores of Indian banks. This technique eliminates the ranking inefficiency of DEA and able to rank all Decision Making Units (DMUs) under consideration to measures the performance of Indians Banks to illustrate the approach.