Financial Performance Evaluation Using MADM Approaches in Indian Banks

摘要

Performance evaluation is critically important as it helps in the identification of weak areas and to plan or replan more effective actions for a better performance. Banking sector plays a pivotal role in economic development of any country and in a fast-developing economy like India, this sector has a major role to play. Performance appraisal of banks is very significant to boost economic planning. This study aims to utilize the multi-criteria decision model to evaluate the performance of banks during the financial year 2017-18. Total 14 banks were selected for the evaluation process in terms of financial parameters defined by Reserve Bank of India. AHP and TOPSIS methodologies of Multi-Attribute Decision Making have been utilized for the evaluation. In AHP, priority weights of three parameters were determined. These weights act as input for the TOPSIS method and final rank of various banks are obtained.