Abstract This paper addresses the concerns regarding the sustainability of the banking sector in India prompted by the recent unintended high level of non-performing assets (NPAs). It uncovers the linkage between NPAs and banking efficiency by integrating NPAs into the measurement of bank efficiency to provide a holistic efficiency profile of the Indian banking sector. We apply the general two-stage data envelopment analysis of Kao [16] by incorporating NPAs as an exogenous output from the first stage, and the empirical results identify an efficiency gap of 16.2% due to NPAs in the Indian banking sector for the year 2016. Further, it also documents that the efficiency gap/loss is increasing over the years and differs according to the shareholding pattern of the banks.

中文翻译：

---

具有不良资产的印度银行的效率：来自两阶段网络DEA的证据

摘要本文针对近期意外的高额不良资产（NPA）引起的印度银行业可持续性的担忧。通过将NPA集成到银行效率的度量中，它揭示了NPA与银行效率之间的联系，从而提供了印度银行业的整体效率概况。我们通过将NPA作为第一阶段的外生产出，对Kao [16]进行了一般的两阶段数据包络分析，实证结果确定了2016年印度银行业由于NPA导致的效率差距为16.2％此外，该文件还记录了效率差距/损失多年来一直在增加，并且根据银行的持股方式而有所不同。