Subramanyam Thupalle

Credit Risk Efficiency in Indian Commercial Banking: an Operations Research Approach Subramanyam Thupalle

Risk Management is one of the challenging tasks in financial industries. In banking system risk occurs due to internal and external factors, like government intervention with fiscal policies. To measure the efficiency of banks we need to identify the risk factors in banks. Impact of this risk factors is disentangle from overall efficiency. Stochastic Frontier Analysis (SFA) and (Data Envelopment Analysis)are two major techniques used to measure the efficiency of organizational units where multiple inputs and outputs makes comparison difficult. This thesis explains about the DEA analysis, how to assess and disentangle the risk factors effect from overall efficiency in different stages. DEAP, EMS and QSB are some of the computer oriented programmes useful in calculating efficiency. SAS is also one of the major high level programming language useful to solve linear and non-linear programming techniques. The ultimate objective is to identify which banks were seriously affecting with this risk factors.