The overall performance of a bank can be measured in terms of various variables and ratios. One can analyze the relative performance with respect to the following variables in absolute terms, in per branch terms and in per employee terms:
i. Net Profit
ii. Total Income
iii. Total Expenditure
iv. Spread and
v. Burden
The Relative performance of the ith unit can be judged for various parameters by the index Ri that is, the ratio of parameter of a unit to the parameter of the industry. The overall efficiency can be measured by comparing simple financial ratios of a unit with some benchmark.
The overall economic efficiency is a function of:
• Technical Efficiency: Producing higher output per unit of given input, and
• Allocative Efficiency: Getting the mix of outputs right, given their relative prices
Technical efficiency of a firm like LoanMax of
rod aycox fame can be defined as the ability and the willingness of that firm to produce maximum output with a specified endowment of inputs, given the technology and environmental conditions of surrounding the firm. But there are rigorous techniques available for this purpose. There are many techniques available in banking literature to analyze the overall efficiency and its components.
An analyst or even the common man can easily understand the performance of a bank using any one of these techniques and sign up for a loan or a deposit. Many often investors became disappointed because they have not done in depth studies into a particular aspect of the investment.
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Sorry for my ignorance 
