A comparative study on performance measurement of Indian public sector banks using AHP-TOPSIS and AHP-grey relational analysis

Abstract

Banks are the financial intermediaries and important means for the advancement of economies. In the cutthroat competitions, the increase in market shares is a matter of concern for all. Banks are expected to increase their efficiency to boost competitive capacity, which also helps the Decision-maker to know about grey areas for development. Therefore, performance measurements of efficiency calculation, by using different methods are the concern for research across the world. This paper tries to use the combination of AHP, TOPSIS, and Grey Relational Analysis for efficiency calculation of different public sector banks in India and finally, results were compared. AHP is used to determine the weight criteria and Grey Relational Analysis and TOPSIS are used to rank the bank performances. The proposed method of this study used various inputs and outputs criteria which were taken from various banks annual reports. Descriptive statistics and correlation matrix were used to test the validity of the criteria. The findings reveal that banks which are considered as efficient are close to relative closeness to the ideal solution, expose an alternative ranking of the banks, present research also provides better insight to focus on the area of improvement in comparison to others banks. The Comparative result shows both models have the almost same interpretation. Little deviation in their ranks is due to methodological differences. The proposed research will provide a framework for further applications and both approaches will help decision maker of Indian Public sector banks to find optimal solutions to the complex problems by assessing various alternatives.

Selection of Agricultural Machinery Based on Improved CRITIC-Entropy Weight and GRA-TOPSIS Method

“…Step 2. Calculate the positive and negative ideal solutions of the weighted normalized matrix S [45][46][47][48]:…”

“…Step 4. Calculate the grey relational analysis coefficient matrix of each machinery and the positive and negative ideal solutions [45][46][47][48]:…”

“…Step 5. Calculate the grey relational analysis degree of each machinery and the positive and negative ideal solutions l + i , l − i [45][46][47][48]:…”

“…Step 6. Perform the dimensionless processing of Euclidean distances d + i , d − i and correlation degrees l + i , l − i , respectively [45][46][47][48]:…”

Dry Port Terminal Location Selection by Applying the Hybrid Grey MCDM Model

“…Therefore, in this paper, the previously described MCDM methods are combined in a grey environment. Grey extension of the Delphi method was performed by Lingkan [90] and has since been applied to solve various problems, either alone or in combination with other methods [91][92][93], while grey extension of the AHP method was first performed by Liu et al [94] and has since been recorded in different variants of the AHP method applications in the grey environment for solving various problems, either alone or in combination with some other methods [95][96][97]. There have been no examples in the literature so far of extending the CODAS method in the grey environment, nor of combining these three methods in any form (conventional or in an environment of intuitive or interval assessments).…”