NPA as an Undesirable Output in Indian Commercial Banking: Additive Slack Based Efficiency DEA Model

Dr. Anil Kumar. K

Abstract: Non- performing assets (NPA) reflect the risk factor of the concerned commercial bank. Some of these banks operate at a threshold point where further reduction of NPA is not possible without reducing loans and dvances, a desirable output. Pursuing an additive slack based efficiency DEA model the potential rate of reduction of NPA is explored for 50 commercial banks operating on Indian soil.

Keywords: Non performing assets, Decision Making Unit DMU, additive slack based efficiency