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 Banks 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.
On the basis of deposit-per-employee, the trio (IDBI Bank, Oriental Bank and Corporation Bank) again led the front. IDBI Banks total deposits increased by 68.4% to Rs 72,998 crore during 2007-08 as eight banks exceeded the average deposit-per-employee in 2007-08. The lowest deposit-per-employee was seen in the case of Punjab & Sind Bank followed by United Bank. SBI, the largest PSB, showed a significant increase in productivity.The business-per-employee of SBI increased from Rs 3.57 crore during 2006-07 to Rs 4.56 crore during 2007-08. An interesting fact is that the number of employees of 26 PSBs decreased by 4.6% to 7,08,775 during 2007-08 from the level of 7,42,915 during 2006-07.