Main Article Content
Abstract
The level of efficiency, productivity, and cost effectiveness is reflected through the bank’s profit which can be considered as a combination of the bank’s performance in its various areas of operation. Since the events associated with everyday decision tradeoffs among the multiple variables of the RRBs can influence the performance, the managerial prerequisites is to identify and utilize different influential inputs by pursuing the best practiced resource regenerating process. Ruling out all other possibilities than the chosen one can best be identified with the relative magnitudes of different inputs and outputs. Using published data of the selected RRBs, operating all over the country, the study drill down to identify the decisive one from the three inputs namely non-performing assets, operating expenditure, and interest costs on a bundle of a tangible activities covering net profit, number of branches, and total business, as these are more regular in banking operation. The best practice rank on the basis of efficiency score is evaluated to see whether a change in value of one or a set of decisive factors significantly affects the performance grade between the banking units under study.