A Hybrid MCDM Framework for Evaluating the Financial Performance of Indian Banks Using Fuzzy Delphi and Shannon Entropy Methods

Abstract

 This paper investigates the financial performance of major Indian banks operating in the Indian capital market between 2018-2023. The study develops a hybrid MCDM method integrating Fuzzy Delphi and Shannon Entropy techniques to evaluate the financial performance of the banks by considering a wide range of parameters. The fuzzy Delphi technique, an integral part of the proposed methodology, helps to analyse the relevance of parameters, while the Shannon Entropy method measures to aids in determining the importance of each parameter, thereby assisting in the overall evaluation. Findings of this research aid stakeholders in making decisions for investing in the available public and private banks. This study is one of the limited works discussing strategies for investing in various banks that can help as a reference to conduct further research, as the performance of each bank changes with time.