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One of the factors in success of the developed countries is considering the efficiency of units. Efficient units not only do not waste the energy but also they obtain the resources properly. As, in every economy, bank are important institutions and essential posts and have a determinant role in developing the economy, their performance assessment has always been important. In todays world, considering the limitation of resources and excessive cost of providing them, proper decisions about the strategy of applying resources are significant. For the time being, domestic banks use transactional mass-based methods and methods based on performance operations, on the amount of equipment, and on obtaining resources in order to assess the performance & ranking of branches. So efficiency index reflects the process of activity between inputs & outputs of a branch which can be a more suitable criterion in assessing the branches performance. Data envelopment analysis is a theoretical framework in assessing, analyzing, & measuring efficiency which do the function of evaluating Decision making units via solving its own models. In this study, for assessing relative efficiency of Agriculture Bank branches in Lorestan Province, two basic models in Data Envelopment Analysis have been used: input-oriented CCR, BCC. The results of this research show that, among 23 branches under evaluation in CCR model, 6 branches are efficient and 17 are inefficient and among 23 branches in BCC model, 15 branches are efficient and 8 are inefficient. By applying AP model, branches have been ranked and a model has been presented for inefficient branches.

iosr journal of business and management

Presenting a Pattern for Increasing the Relative Efficiency of the Bank by Using Data Envelopment Analysis: (Case Study Agricultural Bank of Lorestan Province).