The purpose of this paper is to study the efficiency of commercial banks operating in India. Data Envelopment Analysis (DEA) technique has been applied to a sample of 57 banks. Data had been gleaned from the annual reports of banks on input variables namely Capital, Total assets, Advances, Number of employees and Cost to income ratio and the output variables namely Return on assets, Interest spread, Non-interest income, Deposits to advances ratio and percentage decrease in non-performing assets. The study covers a period of four years from 2009-2010 and 2012-2013. Results indicated an overall level of inefficiency in commercial banks at 47%. This implies that the commercial banks have the scope of producing 1.88 times as much output from the same inputs. The overall Capital utilisation needs to be increased and the number of employees and Advances should be reduced. Further, the study suggests that very large size and very small size banks are more efficient compared with medium size banks. In India, foreign banks are the most efficient while private Banks operate at a higher level of efficiency compared with public banks. The study may help bank managements and banking regulators in addressing issues relating to efficiency of commercial banks and identifying the causes of inefficiency in the banks. However, since the study is covers only Indian commercial banks from2009-10 and from 2012-13, the results and findings cannot be generalised to beyond this group of banks or to a different study period.