Assessing Indian Private Banks: A DEAR Algorithm-Based Ranking Method

Efficiency and performance analysis of banks is critical to make strategic decisions for all its stakeholders. Traditional methods of evaluation often fail to capture multi-dimensional complexities in banking. DEAR (Data Envelopment Analysis-based Ranking) algorithm has gained prominence as an effective method that provides comprehensive assessment and helps in ranking the objectives. This study employs the DEAR algorithm to evaluate and rank ten Privately owned banks taken into consideration that spans 10 years from 2013-2023 in India with critical financial performance metrics. This analysis uses thirteen key financial ratios to assess the banks financial health, risk management and operational efficiency. The findings rank the top performing bank showing high efficiency and robust resource utilization. At the same time, it ranks the lowest performing bank showing the weak financial indications. This result helps policy makers, investors and stakeholders to facilitate decision making based on data and create respective strategies based on financial stability and growth.