Abstract
The aims of this study is to observe the efficiency of prominent microfinance banks
working in Pakistan as the microfinance banks not only playing its role in poverty
alleviation but also becomes an important stakeholder that becomes a cause of
generating income activities in Pakistan through provision of small loans to
unbanked people. A non-parametric approach (Data Envelopment Analysis
Techniques) applied to observe the efficiency of five DMUs including FINCA Bank
Limited, APNA Bank, NRSP, The First Micro Finance Bank, and Khushhali Bank.
In this study Deposit (X1), Fixed Assets (X2) and Capital/Owner Equity (X3) were
taken as input whereas Investment made by said DMUs (Y1), Advances/Loan
sanctioned to customers (Y2) and Total Assets/Total worth (Y3) were taken as
output to measure the efficiency score of aforementioned DMUs. For this study 5-
year data from 2013 to 2017 regarding inputs and outputs were taken from Market
Mix Survey. The results of the study signposted that Khushhali Bank and NRSP
Bank dominated on all remaining DMUs on the basis of Technical Efficiency (TE)
and Scale Efficiency (SE) whereas with reference to Pure Technical Efficiency
(PTE) and overall efficiency score Khushhali Bank dominated on all DMUs.
Zahid Iqbal , Hafiz Fawad Ali, Muhammad Bilal Ahmad. (2018) Evaluating The Efficiency of Pakistani Microfinance Banks Through Data Envelopment Analysis: A Non-Parametric Approach, Journal of the Punjab University Historical Society, Volume 31, Issue 2.
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