• Evaluating Human Capital Efficiency and Financial Performance in Indian Private Banks Using the SBM-DEA Model

    Authors and Affiliations

    Rohit Kumar Sahu
    Department of Commerce, Guru Ghasidas Vishwavidyalaya, Bilaspur, Chhattisgarh
    India
    E-mail: rohitkumarsahudggg@gmail.com
    ORCID: 0000-0003-2987-912X

    K. Utkarsh
    Assistant Professor
    Department of Commerce, Guru Ghasidas Vishwavidyalaya, Bilaspur
    India
    E-mail: utkarshbhu93@gmail.com
    ORCID: 0009-0001-3897-0606

    Jitendra Patel
    Guru Ghasidas Vishwavidyalaya, Bilaspur, Chhattisgarh
    India
    E-mail: kumarpateljitendra0@gmail.com

    Keywords

    Slack-Based Measure (SBM) Data Envelopment Analysis (DEA) Banking Efficiency Human Resource Efficiency Employee Expenditure Financial Performance ROE ROA EPS Indian Private Sector Banks

    Abstract

    The operational efficiency of the banking sector is a critical determinant of financial stability, institutional competitiveness, and sustainable economic development, particularly within emerging economies such as India. In the context of increasing digitalization, intensified market competition, and evolving regulatory frameworks, the efficient utilization of human resources has become a strategic imperative for banking institutions. Addressing this research gap, the present study evaluates the human resource efficiency and financial performance of HDFC Bank and ICICI Bank during the period 2016–2025 using the Slack-Based Measure (SBM) model of Data Envelopment Analysis (DEA). Employee strength and employee expenditure were employed as input variables, while Net Profit, Return on Equity (ROE), Earnings per Share (EPS), and Return on Assets (ROA) were utilized as output indicators. The empirical findings reveal substantial variations in efficiency levels between the two banks across the study period. HDFC Bank consistently operated at or near the efficiency frontier, demonstrating superior human resource management, optimized expenditure allocation, and sustained profitability performance. In contrast, ICICI Bank exhibited notable inefficiencies during the earlier years of the analysis. However, efficiency levels improved significantly after 2020, with the bank achieving full efficiency in 2024 and 2025 following operational restructuring and technological integration initiatives. The study contributes to the growing literature on banking efficiency by integrating human capital variables into the SBM-DEA framework and provides valuable implications for policymakers, regulators, and banking executives regarding workforce optimization, expenditure management, and long-term institutional sustainability.

    How to Cite

    Sahu, R. K., Utkarsh, K., & Patel, J. (2026). Evaluating Human Capital Efficiency and Financial Performance in Indian Private Banks Using the SBM-DEA Model. Science, Education and Innovations in the Context of Modern Problems, 9(8), 1–14.

    Publication History

    Received December 24, 2025
    Accepted April 29, 2026
    Published Online May 19, 2026

    Open Access and Licensing

    © 2026 The Author(s).

    Published by Science, Education and Innovations in the Context of Modern Problems (SEI) under the auspices of IMCRA – International Meetings and Conferences Research Association (Azerbaijan).

    This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

    CC BY 4.0 License

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