Efficiency Evaluation Bank Refah Kargaran Branches in Sistan and Baluchestan Province (S&B,Iran),Using Data Envelopment Analysis

Efficiency Evaluation Bank Refah Kargaran Branches in Sistan and Baluchestan Province (S&B,Iran),Using Data Envelopment Analysis Dr. Ahmad Akbari* a, Dr. Nazar Dahmardeh b.,malihe Saravani c *a Associate Professor and Faculty member of Economics Group University of Sistan & Baluchestan (Iran) b Associate Professor and Faculty member of Economics Group University of Sistan & Baluchestan (Iran) c Master student University of Sistan & Baluchestan (Iran) Corresponding author: Dr. Ahmad Akbari: Associate Professor and Faculty member of Economics Group University of Sistan & Baluchestan (Iran) Abstract Elevated of financial institute as major economic identities in the country would bring about economic development. Efficiency Analysis of Bank Refah Kargaran Branches in Sistan and Baluchistan is the subject of the present study. Data Envelopment Analysis (DEA) technique is utilized here and Efficiency Analysis of Branches in province using variable and constant are carried out in the present study. First of all branches are divided into efficient and inefficient branches through application of CCR and BCC models. Anderson-Peterson (A & P) model in order to a comparison between the efficient branches and their ranking was used. Results from CCR model indicate that seven branches are the most and BCC model show that twelve branches among of branches are. Finally it is concluded that traditional ranking methods bank Refah Kargaran was not suitable for evaluation of branches. Keywords: Efficiency, DEA, Bank Refah Kargaran 1. Introduction Mankind is a sociable being that requires communication capabilities for his/her daily economic needs and dealing activities. Regarding variety, size and extend of activities, he/she requires a sustainable support such as banks. A strong bank that develops along with technological advances and attempt toward meet the customer requirements in the least possible time may progress in advance of its customers requirement and present various bank services so that minimizes banking risks (such as transactions and account recovery from far and close customers) and becomes a safe place for their cashes. Regarding historical and projected economic situations, banks managements are always obliged to improve and revise their banking services, marketing, budgeting, innovation in service providing, competition with other financial institutes and finally increasing the and among subsidiary departments and units. Banks undertake various important tasks in the economics including measure taken for saving accounts, acting as intermediary, facilitating payments and recoveries, providing customers with fair facilities and setting financial order & arrangement in a society. Banks in developing countries usually act as intermediaries because they are capable of sole support to reduce the investment risk using various financial tools. In fact main role in financing mid-term and long-term countries economic programs are accomplished by banks due to their intermediary character in money and capital market. Application of more precise criteria for evaluation of banks efficiencies is required due to their obligation to improve financial standards. 2. Research Subject Nowadays the most important factor of all businesses and their sustainability is stated as improvement of level. Optimized resource utilization in the competitive atmosphere of the current era is a must. Most of the Iran commercial banks have the same level and conditions. So customers trust in banks, their optimism, bank s information strategy, banks responsibility and on-time accountability in response to meet the customers requirements, technological advances, human resource competency, resource level, facilities and bank deferred claims as well as electronic services are all among those factors that help improve the customers satisfaction and bank. Besides, obviation of some barriers such as few number of human resources, small space of bank branch, low level of safe deposit insurance and shortages in Point Of Sale (POS) services may contribute as a key element of sustainable development and meet the customer relationship criteria as well as the organization vision & mission which is the same improvement and of bank branches. Regarding the importance of the subject it should be noted that one of the modern approaches in analysis and of bank branches in known as Data Envelopment Analysis (DEA). Application of such method goes back to 1978 which is now a common efficient technique in evaluation analysis. In the present COPY RIGHT 2012 Institute of Interdisciplinary Business Research 306

study the DEA method is explained first and branches of Bank Refah Kargaran of the Sistan and Baluchistan province are compared to each other as a case study of selected financial institute and attempts have been made to estimate best and efficient branches using such method. In addition, the year 2010 is selected for the present study due to reliable data accessibility during this period of time. Following major questions could be replied using existing measurement methods: 1- Bank Refah Kargardan branches are containing higher degree, have not excess? 2-Do of 1st zone (Zahedan) is more than 2nd zone (Iranshahr) sistan and baluchestan province? Research Assumptions: 1- Bank Refah Kargardan branches with higher grade have not excess. 2- Efficiency of 1st zone (Zahedan) is more than 2nd zone (Iranshahr sistan and baluchestan province. 3. Research methodology The present study is a descriptive cause & effect research in which attempts have been made toward comparison of various branches of Bank Refah Kargaran in the Sistan and Baluchistan province. 4. Statistics Sample statistics used in the present study include all branches of Bank Refah Kargaran in the Sistan and Baluchistan province which registered at least one year in advance of 2010. There are 33 branches which pointed out in section (1). 4-1.Statistical analysis Software platforms used here are Win4Deap and Lindo which are specifically applied in Operations Research field of study. In addition Win4Deap is used here which is specific software for DEA analysis purposes that prepared by the Quealy team of New England University of Australia and became publicized. 5. Data Gathering Method Al the statistics used in the present study has been gathered from Administration of Branch Statistics of Bank Refah Kargaran in Sistan and Baluchistan Province. Efficiency method There are 3 inputs and two outputs in estimating the DEA model as follow; a) Inputs a. X 1 : number of human resources, b. X 2 : deposit level of the branch, c. X 3 : total cost of the branch, b) Outputs a. Y 1 : amount of granted facilities, b. Y 2 : received wages in the branch, DEA is a mathematical programming technique that measures the relative level of DMU groups. In other words, DEA is a mathematical programming technique to measure the relative of organizational units including a variety of inputs and outputs that are hard to compare or estimate their (Cardillo and Fortuna). DEA is a nonparametric approach that utilizes mathematical programming to identify the performance frontier of DMUs with the same inputs and outputs. There is a proper mathematical form used in parametric method while there is only one clear conception about a variety of DMUs utilized in DEA technique. In contrast to parametric approaches that emphasize on parameters, characteristics and features of observed data are included in the DEA approach. A specific equation (such as regression equation, production function and so on) is required for application of parametric method while there is no need to presumption or a special mathematical form in DEA. Efficiency level obtained though DEA approach is a relative one and frontier could be obtained through the convex combination of efficient units. So each DMU located on the aforesaid frontier is operating efficiently and vice-versa. There are some variations required for converting an inefficient unit into an efficient one through changes in input and output levels. It should be noted that a Reference Set is presented after implementation of the DEA model. It has been revealed that each inefficient unit should be compared to which efficient unit (Charnes et al, 1984)., of a DMU equals to output ratio to input levels. Obtaining more outputs using fixed inputs, fix outputs using less inputs and more outputs using less inputs make the organization a more efficient one (Bowlin, 1999). In case of one input and output for an organizational unit, the COPY RIGHT 2012 Institute of Interdisciplinary Business Research 307

Product is the ratio of output to input. However in case of various inputs and output levels it is so hard to find a common weight for inputs and outputs. DEA technique is required to be used in such conditions; It means that we are going to analyze the of unit zero compared to other units. Main DEA models are divided into two parts; CCR and BCC and each of which may be considered using two procedures titled as input-oriented and output-oriented approaches. Each of these approaches could be analyzed through two models. First model is called multiplied model and the second one is named as dual model or envelopment model (Thanassoulis et al, 1996). 6. CCR Model This model was first introduced by Charnes, Cooper and Rohdes in 1978 and named after the first letter of its developers. CCR models are called as fixed respect to the scale that is outputs change proportional to input changes (Fukuyama, 2000). 7. BCC Model The BCC model was first introduced by Banker, Cooper and Charnes and named after first letters of their names. As stated above CCR models are fixed efficient types but this assumption would not be practical in most of organizations, service companies and manufacturers. So utilization of a variable -oriented model for realization of actual problem became necessary (Mo tameni, 2002). Banker, Cooper and Charnes added a convex constraint to CCR set of constraints and introduced the variable into the model (Banker et al, 1984). It could be said that the CCR would never be greater that BCC. So of one DMU in the CCR model it could be concluded the DMU is efficient in the BCC model but reverse analysis is not valid (Mo tameni, 2002). 8. Anderson-Peterson Model(A&P) Basic DEA models cannot easily present ranking of efficient units. AP concept is in fact a criterion for ranking of efficient units. Ranking level assigned to efficient units in AP model is equal to or greater than 1. Residual levels obtained from value using AP model indicates the increase in input levels and the DMU with more input consumption may has more. 9. Literature Review (Research History) First task in DEA was conducted by Rhodes on the analysis of US schools. Bencher, Chanson and Cooper made an evolution in the DEA in method 1984. Application of this method has been developed in banking and financial purposes since mid 1990s. Regarding abovementioned issues it could be pointed out to the following items; Sherman and Gold: Measuring level of 14 prominent US banks, Roberto et al (2007): Measuring level of Brazilian banks, Mohammad Mustafa (2007): Measuring level of major Arab banks using DEA method, Chi Ling Chun (2010): Measuring level of Taiwan large & small banks using DEA method, There are lots of researches carried out with regard to analysis of banks and their comparisons respect to each other. In a research paper conducted by Bergendal and Lindblom (2006) considered analysis of Switzerland deposit banks compared to other country s commercial banks using DEA approach during 1997-2001. They selected of loan amount, size of deposits and bank account balance as three input variables and picked the non-paid charges, human resource costs and profit margin as three output variables of the model. They concluded that most of customer oriented deposit banks are performing more efficient compared to other commercial banks that aimed at maximizing their profits however subject to the scale revealed to be the same in both kinds of banks. Sati (2003) selected the India as his case study to measure the level of banking system in a developing country so used the DEA approach. He divided the banks into three types of public, private and foreign owned banks and concluded that average level of Indian banks is acceptable compared to other world banks. Besides, he found out that level of private banks is less than the same level in public and foreign owned banks. In another research paper conducted by Lee Derrick and Maximilian Hall (2000) to measure the Japan banks using DEA approach, they concluded that loans have considerable impact on the bank and high level of debts caused merges in huge banking industry in Japan. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 308

There are also some studies conducted in Iran regarding analysis such as following items; Rezvan Hejazi et al (Winter 2008), analysis of Export Development Bank of Iran and improvement of its branches using DEA technique, Dr. Yadollah Dadgar and one of his M.Sc. students (Summer 2007), Application of DEA model in evaluation of economic institutes level- case study: Headquarters of Bank Tejarat, Dr. Mohammad Hussein Hosseinzadeh Bahreini et al (Winter 2008), Comparison of economic of Iran private and public banks using DEA method. Hadi Amiri defined and calculated the criteria in commercial banks in 2001. He aimed at identifying existing deficits of previous planning program in the banking system using criteria. He concluded that there is a direct relationship between banking network and its structure, improper monitoring policy and direct link between executive potentials and of banking network. Hassan Langroudi conducted a study in 2000 in the influencing factors of the of Agriculture Bank in 2000 using analysis approach. He calculated the total of the bank during 1986-1996 and concluded that of production factors estimated as average 3.25% before the branches development plan (1986-1991) that became 28.41% after the development plan (1991-1998). Hadian and Azimi Husseini calculated the level of banks in Iran in 2004 using DEA method. They used number of personnel, fixed assets, time deposit (short-term & long-term), Deposit account and bank deposit as input variables of the model and selected the loan facilities (in form of Islamic bond & contract as well as commercial law) as the output of the model. Naderi and Sadeghi conducted a study and analyzed usurious & non-usurious banking in the world in 2003during 200-2001 using DEA technique and CCR & BCC models. Results indicated that non-usurious banking in Bahrain and Qatar that operate along the usurious banking system and competitive atmosphere seems to be higher that non-usurious banks of Iran, Sudan and Pakistan. Besides, level of non-usurious banking has been lower than usurious banking system in 2001. Salami and Talachi measured the level of Agriculture Bank using Turnquist-Till criteria in 2002. Results indicated the improvement of the bank during 1986-1998. Besides, analysis of factors such as human resource, physical intermediary, capital and financial agent compared to all input variables revealed that first two variables imply higher compared to its real level while the second two variables imply lower compared to its real level. 10. Results 10-1.Results of Output Oriented CCR Model Results from execution of output oriented CCR model is presented in table (2). As indicated in the tables there are only seven branches among all branches that could utilize efficiently their resources and get the maximum level. These branches are: Chabahar-Center, Zahedan-Alavi, Zahedan-Saleh, Zahedan-Mazari, Zahedan-Beheshti, Nikshahr-Tamin, Nikshahr-Center. 10-2. Results from Application of Output Oriented BCC Model: Results obtained from output oriented BCC model are stated n table (3). Considering variable assumption respect to the scale of Bank Refah Kargaran branches in the Sistan and Baluchistan province, as could be seen in the table there are twelve branches surpassed others in which seven of them are the same efficient branches regarding fix respect to the scale which are; Chabahar-Center, Zahedan-Alavi, Zahedan-Saleh, Zahedan-Mazari, Zahedan-Beheshti, Nikshahr-Tamin, Nikshahr-Center, and the other 5 branches are; Zabol-Center, Kenarak-Center, Zahedan-Bazar, Zahedan-Joushkaran Complex. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 309

10-3. Results from Application Anderson-Peterson (A & P) model: Results obtained from output oriented Anderson-Peterson (A & P) model l are stated n table (4). As was indicated in the table,this test performed in order to ranking branches. Among of twelve branches only five branches have high. Those branches are Zabol-Center, Zahedan-Bazar, Konarak-Center, Zahedan-Ghalanbor, Zahedan-Joushkaran Complex, respectively. Other branches have equal number one. 11. Conclusion Efficiency analysis of Bank Refah Kargaran branches in the Sistan and Baluchistan province in the financial (ended in March 19 th, 2010) indicated that there are considerable differences among various branches in proper utilization of resources based on implementation of models and resulting levels. Because there have been branches that their level had been different from efficient branches based on various viewpoints regarding the type and scale along with efficient branches. In addition lower average level of branches indicate the significance of level of inefficient branches in calculating the average due to large number of inefficient branches under study or very small level of some branches that generally specify its heterogeneous nature. A decisive factor in analysis is optimized utilization of existing resources. In fact a branch would be efficient if it produces maximum output using minimum inputs. It is obvious that a business or institution with larger resources may greater better production level. The important issue is stated as optimal utilization of resources. Hence a branch with larger outputs may not be an efficient branch due to greater available resources that brings about more outputs. Correlation coefficient between levels of non-derivative loans and facilities should paid b.each branch. The two hypotheses discussed in the beginning of the study are tested here based on the results obtained from previous stages. The two hypotheses are as follow: 1-- Bank Refah Kargardan branches are containing higher degree, have not excess. 2- Efficiency of 1st zone (Zahedan) is more than 2nd zone (Iranshahr sistan and baluchestan) province. Based on the obtained results it could be concluded that maximum could be assigned to grade 2A and grade 1B branches if variable is supposed as constant. Then it comes to grade 2B branches. Grade 3, 4 and 5 are located in 3rd, 4th and 5th ranking respectively (table5). Zahedan-Center branch has the best grade that is grade1 A succeeded to get a lower remark compared to the average level of other branches. Considering constant, there would be no changes in rankings except for ranking of grade 1B branches that decrease from first or second order to sixth order. Based on items mentioned above, the hypothesis stated as: Bank Refah Kargardan branches with higher grade have not excess, can be accepted. Average level of branches located in Zahedan and Iranshahr zones are indicated in table (6). As stated in the table level of 1 st zone (Zahedan) is greater than 2 nd zone (Iranshahr) in both crs and vrs hypotheses. Therefore it could be concluded that the second hypothesis as level of branches located in second zone of the province (Iranshahr) is lower than branches located in first zone of the province (Zahedan) could be accepted. 12. Suggestions 1- Suggested level all of Bank Refah Kargaran sistan and balochestan province accessed via DEA in order to indicate efficient and un efficient branches. 2- To design steady state program to correct management for operation suitable of sources by personnel branches proportional market and competitors banks. 3- To learn professional and skill to personnel branches for using correct of sources and COPY RIGHT 2012 Institute of Interdisciplinary Business Research 310

References Bergendahl,G, Lindblom, T. (2008) Evaluating the performance of Swedish Savings Banks According to Servise Efficiency. European Journal of Operational Research, vol. 185, p p 1663 1673. Bowlin, W, F. (1999) Analysis of the Performance of Defense Busness Segments Using Data Envelopment Analysis. Journal of Accounting and public policy, Vol. 18, issues 4-5 pp, 287 310. Charnes, A. and W. W. Cooper (1984) "The non-archimedean CCR ratio for analysis: a rejoinder to Boyd and Fare" European Journal of Operational Research,15(3): 333-334 Dadgar, Y. Nyknmt Z. (1386), Application of the DEA model to evaluate the performance of economic units, Srprstyhay Case of Commerecial Bank economic essays. Fourth Year. Number Seven. Dorotea De Luca Cardillo, Tiziana Fortuna.(2000) A DEA model for the evaluation of nondominated paths on a road network. European Journal of Operational Research 121(3): 549-558 Fukuyama, H. (2000). Returns to Scals Elasticity in Data Envelopment Analaysis. European Journal of Operation Research, Vol. 125, Issue 1, pp 93 112. Kzj rare, Mahmoud. Hossein Sadeghi (1382) Evaluation of Interest Free Banking efferent in different countries and compare bank Rbvy Ghyrrbvy with banks in the world using data envelopment analysis Economic Studies No. 9 and 10. Hejazi, Rizwan. Azghr Mina Anwar Ali Rostami and Holy (1387) The Export Development Bank of iran productivity and productivity growth of its branches using data envelopment analysis (DEA) Industrial Management Hadian, Ibrahim. Anita Azimi Hosseini (2004), evaluation of banking system performance in Iran using DEA technique, Iran economic research, Hosseinzadeh Bahraini, Mohammed Hussein. Naji Ali Akbar Chmanhgyr Field and Angels (1387), Comparing public and private banks in Iran s economic performance using analytical methods (inclusive ) deta envelopment (DEA) Knowledge and Development No 25. Mohamed Mostafa, (2007) "Benchmarking top Arab banks' through efficient frontier analysis", Industrial Management & Data Systems, Vol. 107 Iss: 6, pp.802-823 Mo tameni, Alireza (2002), dynamic utilization and performance modeling using DEA technique, PhD thesis of Management, Tarbiat Modarres University Salami, Habibullah. Husseni Talachi Langroodi (1381), Measuring productivity in the banking units of the Agricultural Bank case study, Agricultural and Develooment Economics I39 years. Salehi Taleshi, Ibrahim (1999), performance analysis of irrigation grid system using DEA technique, M.Sc. thesis in Agriculture, Tarbiate Modares university Sathye, M. (2003). Efficiency of Banks in a Developing Economy : the Case of India. European Jornal of Operational Research, No 148. pp, 662 671. Seifert, L, M. Zhu, J. (1994). Identifying Excesses and Deficits in Analysis Approach. Omega, Vol, 26. No, 2. pp, 229 296. Sherman, H. and Gold, F. (1985), Bank Branch Operating Efficiency, Journal of Banking and Finance, 9, 297-315. Thanassoulis, E. Boussofiane A. Dyson R. G. (1996) Acomparison of data envelopment analysis and ratio analysis as tools for performance assessment. Omega, Vol. 24, Issue 3, pp, 229 244. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 311

Annexure No. Branch Name Branch Grade/Ranking Branch Zone 1 Zahedan-Center A 1 1 2 Iranshahr-Center 3 2 3 Zabol-Center B 1 1 4 Chabahar-Center 3 2 5 Khash-Center 3 2 6 Zahedan-Alavi A 2 1 7 Saravan-Center 3 2 8 Nikshahr-Center 4 2 9 Zabol-Bagheri 3 1 10 Zahedan-Mirhosseini 4 1 11 Iranshahr-Baluch 4 2 12 Kenarak-Center 5 2 13 Zaboh-Hospital 4 1 14 Zabol-Imam 4 1 15 Zahedan-Saleh B 2 1 16 Zahedan-Bazar 5 1 17 Zahedan-Joushkaran Complex 3 1 18 Zahedan-Sadi 4 1 19 Zahedan-Mazari 4 1 20 Zahedan-Jomhouri Blvd 4 1 21 Zahedan-Beheshti 3 1 22 Zahedan-Medical Science B 2 1 23 Iranshahr-Tamin 5 2 24 Zahedan-Madani 3 1 25 Zabol-Besat 4 1 26 Iranshahr-Khatam 4 2 27 Zabol-Zahak 5 1 28 Khash-22 Bahman 5 2 29 Chabahar-Khayam 5 2 30 Zahedan-Imam Ali 3 1 31 Zahedan-Ghalanbar 4 1 32 Zahedan-Boali 4 1 33 Saravan-Razi 5 2 Table 1: branches of Bank Refah Kargaran in the Sistan and Baluchistan province A 1 : grade 1A branch, B 1 : grade 1B branch, A 2 : grade2a branch, B 2 : grade2b branch. 1 st zone (Zahedan), 2 nd zone (Iranshahr) COPY RIGHT 2012 Institute of Interdisciplinary Business Research 312

Branch Optimal Output (Million Rials) Branch Name Reference Code Optimal Weights Code Level Facility Received Wages 225 Zahedan-Center 0.358 617 2.495 151405 1045 269 Iranshahr-Center 0.481 690-387-617 0.219-1.221-0.336 110466 848 294 Zabol-Center 0.425 387-617 3.130-0.062 194406 1366 295 Chabahar-Center 1 295 1 55706 234 386 Khash-Center 0.720 438-387-690 0.145-0.534-0.150 30799 380 387 Zahedan-Alavi 1 387 1 71807 885 437 Saravan-Center 0.519 690-387-438 0.344-0.820-0.034 58855 464 438 Nikshahr-Center 1 438 1 21376 366 495 Zabol-Bagheri 0.704 387-617 1.206-0.051 76836 550 537 Zahedan-Mirhosseini 0.656 617-690-684 0.025-0.862-0.074 57934 393 568 Iranshahr-Baluch 0.585 438-693-690 0.500-0.268-0.065 36229 302 569 Kenarak-Center 0.526 693-690 0.262-0.407 19380 198 591 Zabol-Hospital 0.542 617-387 0.102-0.696 49609 382 615 Zabol-Imam 0.561 690-387-617 0.401-0.108-0.207 45674 382 617 Zahedan-Saleh 1 617 1 60689 419 619 Zahedan-Bazar 0.522 690-438-387 0.024-0.408-0.102 28326 212 671 Zahedan-Joushkaran Complex 0.957 617-684 0.741-0.184 46753 182 678 Zahedan-Sadi 0.818 438-387-690 0.244-0.526-0.056 29869 334 684 Zahedan-Mazari 1 684 1 48047 141 689 Zahedan-Jomhouri Blvd 0.622 387-690-317 0.524-0.184-0.041 47448 398 690 Zahedan-Beheshti 1 690 1 59810 376 691 Zahedan-Medical Science 0.502 690-387-617 0.506-0.373-0.353 78359 664 693 Iranshahr-Tamin 1 693 1 9039 244 740 Zahedan-Madani 0.724 684-617 0.997-0.392 79352 473 786 Zabol-Besat 0.747 690-387-438 0.132-0.493-0.206 47089 416 797 Iranshahr-Khatam 0.583 387-617 0.462-0.260 46672 423 828 Zabol-Zahak 0.405 438-690-387 0.165-0.274-0.292 35152 356 830 Khash-22 Bahman 0.458 690-693-438 0.538-0.086-0.236 18768 287 894 Chabahar-Khayam 0.320 690-387-617 0.230-0.512-0.012 45414 299 945 Zahedan-Imam Ali 0.625 387-617 0.626-0.136 47760 383 1152 Zahedan-Ghalanbar 0.943 438-690 0.176-0.105-0.208 27666 288 1192 Zahedan-Boali 0.520 617-690-684 0.404-0.078-0.673 64411 343 1341 Saravan-Razi 0.704 438-690-387 0.027-0.556-0.171 24053 292 Average Branches Performance 0.685 --- --- --- --- Table 2: results from execution of output oriented CCR model COPY RIGHT 2012 Institute of Interdisciplinary Business Research 313

Branch Optimal Output (Million Rials) Branch Name Reference Code Optimal Weights Code Level Facility Received Wages 225 Zahedan-Center 0.700 294-387 0.527-0.473 77454 724 269 Iranshahr-Center 0.766 690-387 0.207-0.793 69322 780 294 Zabol-Center 1 294 1 85257 580 295 Chabahar-Center 1 295 1 55706 234 386 Khash-Center 0.755 387-438-1152-0.037-0.539-0.304-617 0.120 29387 363 387 Zahedan-Alavi 1 387 1 71807 885 437 Saravan-Center 0.546 387-294 0.129-0.871 61356 441 438 Nikshahr-Center 1 438 1 21376 366 495 Zabol-Bagheri 0.817 617-387 0.500-0.500 66248 652 537 Zahedan-Mirhosseini 0.665 1152-684-617-0.077-0.068-0.815-690 0.040 57118 387 568 Iranshahr-Baluch 0.693 690-693-619-0.132-0.308-0.289-1152 0.271 30537 254 569 Kenarak-Center 1 569 1 10199 104 591 Zaboh-Hospital 0.617 1152-684-617 0.477-0.046-0.477 43596 336 615 Zabol-Imam 0.625 387-617-1152 0.040-0.581-0.379 41037 352 617 Zahedan-Saleh 1 617 1 60689 419 619 Zahedan-Bazar 1 619 1 14774 111 671 Zahedan-Joushkaran Complex 1 671 1 44737 158 678 Zahedan-Sadi 0.835 690-438-619-0.401-0.185-0.070-1152 0.344 29242 327 684 Zahedan-Mazari 1 684 1 48047 141 689 Zahedan-Jomhouri Blvd 0.649 387-617-1152 0.064-0.460-0.476 45463 381 690 Zahedan-Beheshti 1 690 1 59810 376 691 Zahedan-Medical Science 0.941 690-387 0.372-0.628 67356 696 693 Iranshahr-Tamin 1 693 1 9039 244 740 Zahedan-Madani 0.611 690-617-387 0.32-0.255-0.423 65103 602 786 Zabol-Besat 0.776 690-438-387-0.393-0.302-0.275-617 0.029 45307 400 797 Iranshahr-Khatam 0.617 617-387-1152 0.123-0.519-0.357 44095 400 828 Zabol-Zahak 0.424 690-438-617-0.356-0.377-0.109-1152 0.159 33577 340 830 Khash-22 Bahman 0.475 690-438-1152-0.044-0.154-0.289-693 0.513 18140 277 894 Chabahar-Khayam 0.371 1152-619-690-0.449-0.062-0.255-684 0.234 39130 258 945 Zahedan-Imam Ali 0.658 617-387-1152 0.023-0.450-0.526 45357 363 1152 Zahedan-Ghalanbar 1 1152 1 26078 272 1192 Zahedan-Boali 0.550 387-617-690 0.018-0.892-0.091 60912 423 1341 Saravan-Razi 0.942 1152-619 0.332-0.668 22323 218 Average Branches Performance 0.789 --- --- --- --- Table 3: results from execution of output oriented BCC model COPY RIGHT 2012 Institute of Interdisciplinary Business Research 314

No. Branch Name A&P 1 Zabol-Center 2.15429 1 Zahedan-Bazar 1.91728 2 Kenarak-Center 1.90016 3 Zahedan-Ghalanbar 1.06089 4 Zahedan-Joushkaran Complex 1.04505 5 Chabahar-Center 1 6 Zahedan-Alavi 1 7 Nikshahr-Center 1 8 Zahedan-Saleh 1 9 Zahedan-Mazari 1 10 Zahedan-Beheshti 1 11 Iranshahr-Baluch 1 12 Iranshahr-Tamin 1 Table 4: results from execution of output oriented A&P model level level Zone No. of (crs) (vrs) branches Total branches Average branches Total branches Average branches A 1 1 0.700 0.700 0.358 0.358 B 1 1 1 1 0.425 0.425 A 2 1 1 1 1 1 B 2 2 1.941 0.970 1.502 0.751 3 9 7.153 0.795 6.730 0.748 4 12 9.027 0.752 8.577 0.715 5 7 5.212 0.745 3.935 0.562 Table 5: comparison A 1 : grade 1A branch, B 1 : grade 1B branch, A 2 : grade2a branch, B 2 : grade2b branch. level level Zone No. of (crs) (vrs) branches Total branches Average branches Total branches Average branches Zahedan 22 17.81 0.810 12.335 0.697 Iranshahr 11 8.223 0.748 7.192 0.654 Table 6: level of branches in Zone 1 (Zahedan) and Zone 2 (Iranshahr) COPY RIGHT 2012 Institute of Interdisciplinary Business Research 315