Measuring the relative efficiency of banking industry has been one of the most interesting areas of research for the past few years. There are literally various techniques for measuring the relative performance of similar units such as banks including data envelopment analysis and stochastic frontier analysis. This paper presents an empirical investigation to measure the relative performance of some Iranian banks located in province of Alborz, Iran for two consecutive fiscal years of 2009 and 2010. The proposed study implements stochastic frontier analysis to measure the performance of these banks based on two set of criteria. In the first model, total loans devoted are considered as output and employees, total customers?investment, total fixed assets as well as no-interest deposits are considered as inputs of the model. For the second model, special banks?characteristics such as total economic value of branch, the ratio of fixed assets to total assets, educational backgrounds of employees as well as the level of automation in the system are considered as input parameters of the systems. The results indicate that most bank perform relatively well according to their efficiencies.