Efficiency Analysis of Scheduled Commercial Banks of Bihar: An Outreach Perspective


  • Ritesh Ravi Assistant Professor, Amity University, Patna, Bihar
  • Abhijit Ghosh Assistant Professor of Economics, Mahatma Gandhi College, Lalpur, Daldali, Purulia-723130, West Bengal




Banking, Efficiency Analysis, Scheduled Commercial Bank, Data Envelopment Analysis (DEA), Bihar, India.


This paper proposes the outreach approach to measure the efficiency of scheduled commercial banks (SCBs) at the district level in Bihar using Data Envelopment Analysis (DEA) for two time periods - 2001 and 2011. An attempt was also made to examine the status of SCBs of Bihar in comparison to other major States of India. This study was conducted in two stages. Firstly, the efficiency scores were calculated using DEA and the result shows that inequality of major States increases in terms of efficiency and within Bihar, it improved during 2001 and 2011. Secondly, the study tried to find out the determinants of banking efficiency using the Tobit regression model. In 2001, the literacy rate and ‘households availing banking services’ are significant at the district level in Bihar. ‘Urbanisation’ is explaining the banking efficiency in 2011, as 88.7 per cent of the people in Bihar live in rural areas. Geographical dummy northeast and southeast regions of Bihar are positively significant in 2001 whereas northwest is significant in 2011. This study calls for policy action to increase the outreach at the sub-regional level by improving efficiency.


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How to Cite

Ravi, R., & Ghosh, A. (2022). Efficiency Analysis of Scheduled Commercial Banks of Bihar: An Outreach Perspective. Journal of Rural Development, 40(3), 424–441. https://doi.org/10.25175/jrd/2021/v40/i3/149505

Author Biographies

Ritesh Ravi, Assistant Professor, Amity University, Patna, Bihar

Research Scholar, Dept of Economics and Agriculture Economics


Assistant Professor, Department of Management


Abhijit Ghosh, Assistant Professor of Economics, Mahatma Gandhi College, Lalpur, Daldali, Purulia-723130, West Bengal

Assistant Professor, Department of Economics and Agricultural Economics


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