State-run banks shed sloth

Font Size

Print

Feedback

Email

Discuss

Related Articles

HDFC Bank cuts rates for used carsUnion Bank starts auditing branchesPvt banks pip public peers in NPAsBanks likely to retain home loan rates

Mumbai, Jul 1: The productivity of public sector banks (PSBs) in 2007-08 increased significantly. Leading the pack was IDBI Bank which emerged the most efficient, leaving behind 25 other banks in the three parameters employed to determine the efficiency of India’s state-run public sector banks.

Three parameters were used to assess the productivity of the banks: business-per-employee, profit-per-employee and deposit-per-employee.

IDBI Bank stood first in all three parameters. The productivity ratios of the bank in terms of business, deposit and profit were Rs 18.09 crore, Rs 8.85 crore and Rs 9,00,000, respectively. The average business-per-employee of the 26 PSBs have gone up from Rs 4.99 crore in 2006-07 to Rs 6.30 crore in 2007-08.The average deposit-per-employee has also increased from Rs 3.08 crore in 2006-07 to Rs 3.65 crore in 2007-08, and the average profit-per-employee increased from Rs 3.23 lakh to Rs 3.81 lakh during the study period.

The most important indicator for measuring the efficiency of a bank is its net profit-per-employee. On the basis of profit-per-employee, IDBI Bank, Corporation Bank and Oriental Bank were the top three banks in 2007-08, while eleven banks exceeded the average profit-per-employee in the same period and Central Bank followed by UCO Bank registered the lowest profit-per-employee ratio.

IDBI Bank,Oriental Bank and Corporation Bank, on the other hand, also topped the list in terms of business-per-employee in 2007-08. IDBI Bank’s total business increased by 46.7%, to Rs 1,55,210 crore during 2007-08, from Rs 1,05,825 crore in 2006-07. Six banks exceeded the average business-per-employee in 2007-08 when Central Bank again recorded the lowest business-per-employee ratio.