A performance evaluation model of bank branches by using a hybrid approach PCA and DEA(Case Study: third degree branches of keshavarzi bank)

Performance evaluation has always been considered as one of the critical issues in any organization . In order to identify, adjust and apply the changes in their short-term and long-term goals, Every organization needs to evaluate its performance continuously. Considering the key role of banks as one of the most important financial and economic pillars of any society, it is important to evaluate the performance of these financial institutions.
In this study , 100 third degree branches of Agri-culture Bank with 36 sub-indicators (7 inputs and 29 outputs) were evaluated and these 36 sub-indicators were clustered in 3 inputs and 7 outputs . In this research , CCR-O model is used as the main model and to reduce the number of sub-indicators and obtain main-indicators three scenarios were performed ( simple average , weighted average by using weights of AHP and Principle Component Analysis(PCA)) and outputs of these three scenarios were used as CCR-O inputs. Finally, the increase of discrimination power in all three scenarios was examined by using coefficient of variation and it was understood that discrimination power in PCA-DEA scenario increased more than other two scenarios.