PERFORMANCE BENCHMARKING OF AN

AXIS BANK BRANCH USING DATA

ENVELOPMENT ANALYSIS 

PROJECT REPORT

MASTERS in BUSINESS ADMINISTRATION

(Sales & Marketing)

Submitted by:

NEERAJ BHANOT

University Roll No – 105272731

Programme Code – MBACT

INDIRA GANDHI NATIONAL OPEN UNIVERSITY, NEW DELHI

CERTIFICATE OF ORIGINALITY

This is to certify that the project titled “Performance Benchmarking of an Axis Bank Branch

Using Data Envelopment Analysis” is an original work of the Student and is being submitted in

partial fulfillment for the award of the MBA (Masters in Business Administration) of Indira

Gandhi National Open University. This report has not been submitted earlier either to this

University or to any other University/Institution for the fulfillment of the requirement of a course

of study.

SIGNATURE OF SUPERVISOR SIGNATURE OF STUDENT

Place: Place:

Date: Date:

(i)

ACKNOWLEDGEMENT

The author is highly grateful to the Principal, Indira Gandhi National Open University

(IGNOU), New Delhi, for providing this opportunity to carry out the present project work

The constant guidance and encouragement received from Prof. Harwinder Singh, Department of

Mechanical Engineering, Guru Nanak Dev Engineering College (GNDEC) Ludhiana has been of

great help in carrying out the present work and is acknowledged with reverential thanks. Without

the wise counsel and able guidance, it would have been impossible to complete the project in this

manner.

I also express gratitude to other faculty members of Mechanical Engineering Department,

GNDEC for their intellectual support throughout the course of this work.

NEERAJ BHANOT

Masters in Business Administration

Programme Code – MBACT

University Roll No. – 105272731

(ii)

List of Tables Table Number Table Title Page Number

1

Data of an Axis Bank Branch from 2004-05 till

2010-11

31

2 Calculation of Spearmann’s Rank Correlation Coefficient 42

3

Year Wise Improvement Achieved by the Branch (in

%)

56

List of Figures Figure Number Figure Title Page Number

1 The Ribbon Toolbar 25

2 Overall View of Software 26

3 Input/Output Process Diagram 31

4 Salary Expense 32

5 Premises & Fixed Assets 32

6 Other non interest expenses 32

7 Interest Income 33

8 Non Interest Income 33

9 Efficiency Scores 43

10 Potential Improvements for Year a 44

11 Potential Improvements for Year b 45

12 Potential Improvements for Year c 45

13 Potential Improvements for Year d 46

(iii)

14 Potential Improvements for Year e 46

15 Potential Improvements for Year f 47

16 Potential Improvements for Year g 47

17 X-Y Plot Window b/w salary expenses & interest

income

49

18 X-Y Plot Window b/w salary expenses & non –

interest income

49

19 X-Y Plot Window b/w other non - interest expenses

& interest income

50

20 X-Y Plot Window b/w other non – interest expenses

& non – interest income

50

21 X-Y Plot Window b/w premises and fixed assets &

interest income

51

22 X-Y Plot Window b/w premises and fixed assets & non –

interest income

51

23 Input/Output Potential Improvement Window for

salary expenses

52

24 Input/Output Potential Improvement Window for

premises and fixed assets

52

25 Input/Output Potential Improvement Window for

other non – interest expenses

53

26 Input/Output Potential Improvement Window for

interest income

53

27 Input/Output Potential Improvement Window for

non – interest income

54

(iv)

Index

Topics Page No

Certificate of Originality (i)

Acknowledgement (ii)

List of Tables (iii)

List of Figures (iii)

1. Company Profile 1

1.1 Introduction of Axis Bank 1

1.2 History of Axis Bank 1

1.3 Management of Axis Bank 6

1.4 Milestone 7

2. Review of Literature 14

3. Data Envelopment Analysis(DEA) 17

3.1 Terminology of DEA 19

4. The Software 23

4.1 The Office 2007 Interface 24

4.2 Conducting an Efficiency Study 27

5. Observations & Calculations 31

5.1 Observations 31

5.2 Calculations 34

5.2.1 CCR Model Analysis 34

5.2.2 BCC Model Analysis 42

6. Results & Discussions 43

7. Conclusion 55

8. References 57

(v)