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Finally the table 4 provides the overall efficiency scores of banking sector for the year 2006 to 2010. The banks have the highest efficiency score of 1 by using both CRS and VRS in Year 2006 and 2010. The minimum efficiency score of 0.732 is observed for the year 2009. This least efficient score is attributed to poor performance of Con. Banks in the same year which not only affected the performance of Con. Banks but in addition resulted in a reduced overall banking efficiency. The banks obtained an efficiency score of 1 in the year 2010 but because of the highest efficiency score of the Isl. banks rather than the Con. banks. The findings of this table lend further support to the idea that the Isl. banks are contributing positively and significantly to the overall efficiency of banking sector.
Our findings are reported by using CRS and VRS efficiency scores over the sample of 22 banks and for the year 2006 to 2010. The other studies, using the different estimation techniques, banks and time period must be interpreted carefully and should not be confused with ours.
This empirical study highlights the efficiency of individual banks, Con. & Isl. Banks and overall banking system of Pakistan over the sample period 2006 to 2010. The study included a sample of 22 banks covering both the Con. and Isl. banks operating in Pakistan. The efficiency scores were estimated through Data envelopment analysis (DEA) by using the CRS and VRS. The descriptive statistics of 6 variables (inputs and outputs) included in the study revealed that fixed assets (Variable) has the highest skewnes and kurtosis while the deposits have the highest standard deviation. The efficiency scores of the individual banks declared the five banks to be the most efficient with the score of 1over the sample time period from 2006 to 2010 and among them three were the Con. and 2 were the Isl. Banks. While the efficiency scores obtained for the Con. and Isl. banks highlight the two important facts. Firstly, the falling and deteriorating efficiency score of Con. banks, secondly, the consistent and improving efficiency of Isl. Banks over the year 2006 to 2010. Finally, the overall banking performance in Pakistan seems to be deteriorating from 2006 to 2009 with the efficiency score falling from 1 to 0.732. Even at the verge of this falling performance the Isl. Banks had a positive contribution whereas the Con. Banks caused the deteriorating efficiency scores.

Table 4

SR No. Year CRS VRS
1 2006 1 1
2 2007 0.811 0.859
3 2008 0.734 0.774
4 2009 0.732 1
5 2010 1 1