The average business per employee of the 20 PSBs has gone up from Rs 381 lakh in 2005-06 to Rs 483 lakh in 2006-07. The average deposit per employee have also increased from Rs 234 lakh in 2005-06 to Rs 294 lakh in 2006-07. And the average profit per employee increased from Rs 2.41 lakh to Rs 3.16 lakh during the study period.
One of the important indicators, for assessing the efficiency of a bank, is the net profit per employee.
On the basis of profit per employee, the top three in 2006-07 were Oriental Bank , Corporation Bank and Indian Overseas Bank .Nine banks exceeded the average profit per employee during 2006-07.
On the other hand, the average business per employee of the 11 private banks have increased from Rs 545 lakh in 2005-06 to Rs 582 lakh in 2006-07.
The average deposit per employee have also increased from Rs 458 lakh in 2005-06 to Rs 474 lakh in 2006-07. And the average profit per employee increased from Rs 4.43 lakh to Rs 4.51 lakh in 2006-07. On the basis of profit per employee , the top three in 2006-07 were ICICI Bank, UTI Bank and HDFC Bank. Out of eleven private banks, only four banks exceeded the average profit per employee during 2006-07. From the above analysis one thing is clear that though the ratios are higher for private banks, the efficiency of PSBs have increased significantly during the year 2006-07. ICICI Bank has emerged as the most efficient private sector bank in the country having scored over 30 others in three denominators this study employed to determine the efficiency.
Nachiket Mor, deputy managing director, ICICI Bank says, With a comprehensive strategy, covering multiple customer segments through customized products and delivery channels, the rural business of ICICI Bank has witnessed considerable growth.
ICICI Bank stood first with respect to business per employee, profit per employee and second with respect to deposit per employee.The productivity ratios of the bank in terms of business, deposit and profit are Rs 1027 lakh, Rs 692 lakh and 9 lakh respectively.