The present study examines the efficiency of 12 public sector banks (PSBs) in ensuring financial inclusion (FI) through the Self-Help Group-Bank Linkage Programme (SHG-BLP). Data envelopment analysis (DEA) is applied for the periods 2011–2012 to 2021–2022 for this purpose. The study incorporated the Charnes, Cooper and Rhodes (CCR) and Banker, Charnes and Cooper (BCC) models. The findings suggest that with the CCR model, two banks, and with the BCC model, five banks are found to be consistently efficient throughout the study period. Furthermore, the Mann–Whitney U test clarifies that, based on mean efficiency under both models, a significant variation exists between the top 50% and bottom 50% of the banks. Additionally, the projection and shortfall analysis indicate that only four out of the 12 banks are efficient. Therefore, the comprehensive information, as an outcome of the study, proposes that the banks which were not found efficient should expand their financial services to the self-help groups (SHGs).
AgarwalS., AlokS., GhoshP.GhoshS., PiskorskiT., & SeruA. (2017). Banking the unbanked: What do 280 million new bank accounts reveal about financial access?Columbia Business School Research Paper.
2.
AgarwalaN., MaityS., & SahuT. N. (2023, January6). Efficiency of Indian banks in fostering financial inclusion: An emerging economy perspective. Journal of Financial Services Marketing. https://doi.org/10.1057/s41264-022-00203-7
3.
AghimienP. A., KamarudinF., HamidM., & NoordinB. (2016). Efficiency of Gulf Cooperation Council banks. Review of International Business and Strategy, 26(1), 118–136. https://doi.org/10.1108/ribs-11-2013-0111
4.
AhnH., & LeM. H. (2014). An insight into the specification of the input-output set for DEA-based bank efficiency measurement. Management Review Quarterly, 64(1), 3–37. https://doi.org/10.1007/s11301-013-0098-9
5.
Al-KubatiN. A. A., & SelvaratnamD. P. (2023). Empowering women through the Self-Help Group Bank Linkage Programme as a tool for sustainable development: Lessons from India. Community Development Journal, 58(2), 283–308. https://doi.org/10.1093/cdj/bsab036
6.
ArshinovaT. (2011). The banking efficiency measurement using the frontier analysis techniques. Journal of Applied Mathematics, 4(3), 165–176.
7.
BankerR. D., CharnesA., & CooperW. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 30(9), 1078–1092.
8.
BannourB., SghaierA., & NurunnabiM. (2020). How to choose a nonparametric frontier model? Technical efficiency of Turkish banks assessing global. Global Business Review, 21(2), 348–364. https://doi.org/10.1177/ 0972150918778942
9.
BhatiaV., BasuS., MitraS. K., & DashP. (2018). A review of bank efficiency and productivity. Opsearch, 55(3), 557–600.
10.
BoussofianeA., DysonR. G., & ThanassoulisE. (1991). Applied data envelopment analysis. European Journal of Operational Research, 52(1), 1–15.
11.
CharnesA., CooperW. W., & RhodesE. (1978). Measuring the efficiency of decision-making units. European Journal of Operational Research, 2(6), 429–444.
12.
ChowdhuryM. A. M, HaronR., SulistyowatiM. K., & Al MasudMd. A. (2022). The efficiency of commercial banks in Indonesia. International Journal of Economic Policy in Emerging Economies, 15(2/3/4), 280. https://doi.org/10.1504/ijepee.2022.121346
13.
Demirgüç-KuntA., & SingerD. (2017). Financial inclusion and inclusive growth: A review of recent empirical evidence [World Bank policy research working paper 8040]. World Bank.
14.
ElayarajaM. S. (2020). Role of Self-Help Group-Bank Linkage Programme (SHG-BLP) in financial inclusion: Evidence from major states. The Microfinance Review, 12(1), 1–19.
15.
FarrellM. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society Series A: Statistics in Society, 120(3), 253–281.
16.
FethiM. D., & PasiourasF. (2010). Assessing bank efficiency and performance with operational research and artificial intelligence techniques: A survey. European Journal of Operational Research, 204(2), 189–198. https://doi.org/10.1016/j.ejor.2009.08.003
17.
GolanyB., & RollY. (1989). An application procedure for DEA. Omega, 17(3), 237–250.
18.
GrmanováE., & IvanováE. (2018). Efficiency of banks in Slovakia: Measuring by DEA models. Journal of International Studies, 11(1), 257–272. https://doi.org/10.14254/2071-8330.2018/11-1/20
19.
JiangH., & HeY. (2018). Applying data envelopment analysis in measuring the efficiency of Chinese listed banks in the context of macroprudential framework. Mathematics, 6(10), 184. https://doi.org/10.3390/math6100184
20.
KamarudinF., SufianF., NassirA., Md. NassirA., & HussainH. I. (2019). Bank efficiency in Malaysia a DEA approach. Journal of Central Banking Theory and Practice (Podgorica), 8(1), 133–162. https://doi.org/10.2478/jcbtp-2019-0007
21.
KumarA., & DhingraS. (2016). Evaluating the efficiency of Indian public sector banks. International Journal of Indian Culture and Business Management, 13(2), 226. https://doi.org/10.1504/ijicbm.2016.078041
22.
MaityS. (2019). Financial inclusion and multidimensional poverty reduction through self-help-group-led microfinance: Evidence from Bodoland, Assam, India. Enterprise Development & Microfinance, 30(3), 152–173.
23.
MaityS. (2023a). Financial inclusion also leads to social inclusion—Myth or reality? Evidences from self-help groups led microfinance of Assam. Journal of Innovation and Entrepreneurship, 12(1), 1–22.
24.
MaityS. (2023b). Self help groups, microfinance, financial inclusion and social exclusion: Insight from Assam. Heliyon, 9(6), e16477.
25.
MaityS., SahuT. N., & AgarwalaV. (2022). Efficiency of public sector banks in achieving the goal of PMJDY and PMMY. International Journal of Economics and Business Research, 1(1), 1. https://doi.org/10.1504/ijebr.2022.10038248
26.
MaityS., & SaraniaR. (2017). Does microfinance alleviate poverty and inequality? Studying self-help groups in Bodoland, Assam. Development in Practice, 27(7), 1006–1019. https://doi.org/10.1080/09614524.2017.1355353
27.
MarschallP., & FlessaS. (2011). Efficiency of primary care in rural Burkina Faso. A two-stage DEA analysis. Health Economics Review, 1(1). https://doi.org/10.1186/2191-1991-1-5
28.
Martínez-CampilloA., WijesiriM., & WankeP. (2018). Evaluating the double bottom-line of social banking in an emerging country: How efficient are public banks in supporting priority and non-priority sectors in India?Journal of Business Ethics, 162(2), 399–420.
29.
MohantyB. (2013). Transformation of credit delivery for the poor through SHG–bank linkage programme: Retrospect & prospects. Journal of Land and Rural Studies, 1(1), 55–74.
30.
MukherjeeA., & ChakrabortyS. (2012). Financial inclusion of the poor and marginalised in Jharkhand: Analysis of the existing model. International Journal on Research and Development-A Management Review (IJRDMR), 1(1), 8.
31.
MushtaqR., & BruneauC. (2019). Microfinance, financial inclusion and ICT: Implications for poverty and inequality. Technology in Society, 59, 101154. https://doi.org/10.1016/j.techsoc.2019.101154
32.
NABARD. (2023). Status of microfinance in India 2022-23. https://www.nabard.org/auth/writereaddata/tender/status-of-microfinance-in-india-2022-23.
33.
NigmonovA. (2010). Bank performance and efficiency in Uzbekistan. Eurasian Journal of Business and Economics, 3(5), 1–25.
34.
OhsatoS., & TakahashiM. (2015). Management efficiency in Japanese regional banks: A network DEA. Procedia—Social and Behavioral Sciences, 172, 511–518. https://doi.org/10.1016/j.sbspro.2015.01.394
35.
OnourI., & AbdallaA. (2011). Technical efficiency analysis of banks in major oil exporting Middle East countries[MPRA paper 29884]. https://ideas.repec.org/p/pra/mprapa/29884.html
36.
OziliP. K. (2021, October). Financial inclusion research around the world: A review. In Forum for social economics (Vol. 50, pp. 457–479). Routledge.
37.
PatilS., & KokateK. (2017). Identifying factors governing attitude of rural women towards Self-Help Groups using principal component analysis. Journal of Rural Studies, 55, 157–167.
38.
PatilS., & SinghM. (2020). Micro financial perspectives of self-help groups from disadvantaged districts of Maharashtra. Indian Journal of Economics and Development, 16(2), 247–255.
39.
RangappaK. B., BaiR., & SandeshA. L. (2009). Self-help groups and financial inclusion of rural households in dry land villages of Davangere District, Karnataka. The Microfinance Review, 1, 171–182.
40.
ŘepkováI. (2014). Efficiency of the Czech banking sector employing the DEA window analysis approach. Procedia Economics and Finance, 12, 587–596. https://doi.org/10.1016/S2212-5671(14)00383-9
41.
RussellA., DixitV., & HandyF. (2024). Microfinance through the Self-Help Group-Bank Linkage Programme: Impact on ancillary employment. Canadian Journal of Development Studies/Revue canadienned’études du développement, 45(1), 1–20.
42.
SahaA., & RavisankarT. (2000). Rating of Indian commercial banks: A DEA approach. European Journal of Operational Research, 124(1), 187–203. https://doi.org/10.1016/s0377-2217(99)00167-8
43.
SangeethaR. (2020). How efficient are public sector banks in India? A non-parametric approach. Banks and Bank Systems, 15(4), 108
44.
SapciA., & MilesB. (2019). Bank size, returns to scale, and cost efficiency. Journal of Economics and Business, 105, 105842. https://doi.org/10.1016/j.jeconbus.2019.04.003
45.
SaraniaR., & MaityS. (2014). Self Help Groups (SHGS) and financial inclusion—A case study in Baksa district of Assam. International Journal of Humanities & Social Science Studies, 1(3), 137–146.
46.
SaravananV., BaranitharanD. K., ThenkovanM., & SivasubramanianK. (2024). An analytical study on the Self-Help Group through financial inclusion scheme in India. In AI in business: Opportunities and limitations: Volume 1 (pp. 69–78). Springer.
47.
ShettyN., & PintoP. (2015). Financial inclusion through SHG-BLP: A case study of SKDRDP and NGVCT in India. World Review of Business Research, 5(3), 91–107
48.
SibiM. S., & AnanthA. A. (2017). Banking inclusion—A gateway to financial inclusion. Sumedha Journal of Management, 6(1), 4–19.
49.
TamatamR., DuttaP., DuttaG., & LessmannS. (2019). Efficiency analysis of Indian banking industry over the period 2008–2017 using data envelopment analysis. Benchmarking: An International Journal, 26(8), 2417–2442. https://doi.org/10.1108/bij-12-2018-0422
50.
ThanassoulisE. (1999). Data envelopment analysis and its use in banking. Interfaces, 29, 1–13. https://doi.org/10.1287/inte.29.3.1
51.
TitkoJ., StankevičienėJ., & LāceN. (2014). Measuring bank efficiency: DEA application. Technological and Economic Development of Economy, 20(4), 739–757. https://doi.org/10.3846/20294913.2014.984255
52.
TripathiA. K. (2014). Spread of the Self-Help Group-Bank Linkage Programme in India: Potential vis-à-vis achievements. Journal of Asian and African Studies, 49(2), 215–233.
53.
VasanthaS., VaradharajanR., & VaradharajV. (2013). Self help group bank linkage model as catalyst for financial inclusion in an unbanked rural area. Indian Journal of Commerce & Management Studies, IV, 1–6.
54.
VassiloglouM., & GiokasD. (1990). A study of the relative efficiency of bank branches: An application of data envelopment analysis. Journal of the Operational Research Society, 41(7), 591–597.
55.
VenkataramanyS., & BhasinB. B. (2011). Path to financial inclusion: The success of Self-Help Groups-Bank Linkage program in India. International Business & Economics Research Journal, 8(11). https://doi.org/10.19030/iber.v8i11.3181
56.
World Bank Group. (2022). Financial inclusion. https://www.worldbank.org/en/topic/financialinclusion/overview\
57.
YangZ. (2009, March). Bank branch operating efficiency: A DEA approach. In Proceedings of the international multiconference of engineers and computer scientists (Vol. 2, pp. 18–20). IMECS.
58.
ZhuN., ShahW. U. H., KamalM. A., & YasmeenR. (2021). Efficiency and productivity analysis of Pakistan’s banking industry: A DEA approach. International Journal of Finance & Economics, 26(4), 6362–6374. https://doi.org/10.1002/ijfe.2123
