Investigating Efficiency of Isfahan Public Banks using DEA Approach

Efficiency and productivity have played an important role in the firm development and optimizing the level of productivity that is the key to the successes of firms in the economic comparative world. Public Banks are really important sectors whose play significant role in the development of the country. As a result, this sector has always been given special attention and also a great deal of recourses. So supervision, control and optimum allocation in this sector is important, which requires evaluating the efficiency of different sections of it. In order to improve efficiency, the first step is measuring. In this paper it is measured the efficiency and productivity of 9 public banks in esfahan during 1384-85 based on DEA that is a non-parametric method. We use DEAP software to measure efficiency in 2 situations: (1) constant return to scale and minimizing inputs and (2) variable return to scale and minimizing inputs. Notice that it is considered that each bank is such as an economic firm.Results show that in the first situation all of the banks except Maskan are inefficient and the average of efficiency is 0.663. In the second situation all of the banks except Maskan, Melli & Tosee saderat are inefficient and the average of efficiency is 0.779. Results also show the optimum amount of inputs to change ineeficient banks into efficient banks.