The growth in staff cost of public sector banks vis-?-vis private banks was significantly higher during April-June ?09, reveals a study of the growth in staff cost of 25 PSBs and 17 private sector banks during April-June ?09 and April-June ?08. As per the study, staff cost in the case of PSBs rose by 37.6%, whereas private banks? staff cost rose by only 8.4%.
The total staff cost of 25 PSBs increased from Rs 7,291 crore during April-June 2008 to Rs 10,032 crore during April-June 2009.
Among the PSBs, the highest increase in staff cost was seen in the case of Vijaya Bank, where it increased by 104.6%, from Rs 101 crore to Rs 207 crore. This can be explained from its performance. The total income of Vijaya Bank increased by 15.2% during April-June 2009. On the other hand, the net profit was Rs 143 crore during April-June 2009, as compared to a loss of Rs 76 crore during April-June 2008.
In Central Bank?s case, the staff cost increased from Rs 292 crore to Rs 469 crore. Andhra Bank had a staff cost of Rs 141 crore during April-June ?08, which rose to Rs 211 crore during April-June ?09. In April-June ?09, SBI had the highest staff cost of Rs 3,411 crore, followed by PNB (Rs 907 crore) and Bank of Baroda (Rs 594 crore).
In April-June ?09, the increase in staff cost of private sector banks was lower compared to public sector banks. Among the 17 private sector banks, six banks, including South Ind Bank, IndusInd Bank, Axis Bank, Dhanalakshmi Bank, Lakshmi Vilas Bank and Federal Bank, showed over 40% increase in staff costs during April-June ?09.
On the other hand, between April-June ?09 and April-June ?08, staff cost of 17 private sector banks increased to Rs 2,134 crore from Rs 1,969 crore. All the private sector banks? staff costs increased during April-June ?09, except three?Kotak Mahindra Bank, Development Credit Bank and ICICI Bank.
The staff cost of ICICI Bank declined from Rs 523 crore during April-June ?08 to Rs 466 crore during April-June ?09. This can be explained from its performance. The total income of ICICI Bank decreased by 2.2% to Rs 9,223 crore during April-June ?09, as compared to Rs 9,430 crore during April-June ?08.
In April-June ?09, HDFC Bank had the highest staff cost followed by ICICI Bank and Axis Bank. The highest increase in staff cost was seen in the case of Axis Bank.
