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An Analytical Study on Productivity of Indian
Commercial Banks and Job Satisfaction of Employees
A Summary Submitted to Kurukshetra University, Kurukshetra
For the Award of the degree of
DOCTORATE OF PHILOSOPHY
Submitted By: KAMLESH M.com, MBA, M.Phil
Under The Supervision of: Dr. Hawa Singh Professor Department of Commerce Kurukshetra University, Kurukshetra
DEPARTMENT OF COMMERCE
KURUKSHETRA UNIVERSITY, KURUKSHETRA 2014
1
SUMMARY
The term bank is being used since long time but there is no clear conception regarding its
beginning. Origin of the bank belongs to the word 'Banchi' or to the Greek Word banque. Both
these words refer to some kind of banking. 'Casa De Son Giorgio' was the first bank to be
established in 1148. The first public bank was bank of Venica. It was establish in 1157. In simple
words, Bank refers to an institution that deals in money. The institution accepts deposits from the
people and gives loans to those who are in the need. Besides dealing in money, banks these days
perform various other functions, such as credit creation, agency job and general service. Bank,
therefore, is such an institution which accepts deposit from the people, gives loans, creates credit
and undertakes agency work. Banking System occupies an important place in a nation's
economy. A banking system plays a pivotal role in the economic development of a country and
form the core of the money market. The business of banking is as old as the civilization itself. As
early as 2000 B.C. The Babylonians had developed a system of banking. They used their temples
for leading at higher rates of interest against gold and silver which had been left with them for
safe custody. In India, the ancient Hindu scriptures refer to money lending activities in the Vedic
period. In the initial stages, the banking largely meant money landing and it was restricted to
selected number of families working as sole proprietary firms.
Modern banking in India started only in 18th century. The first bank in India was
established in 1770 by an Agency House namely, Alexandra and Co. This bank was named as
'Bank of Hindustan'. With government assistance, presidency Bank of Bengal, Presidency Bank
of Bombay and Bank of Madras were established respectively in 1806, 1840 and 1843. Oudh
Commercial Bank was the first limited liability bank established in 1881 by the Indians. In 1894,
the Punjab National Bank and in 1901 the Peoples Bank were established. In 1921, all the three
Presidency Banks were merged to become imperial Bank of India. In 1935, Reserve Bank of
India was established. The RBI is India's central Bank.
Since independence, Indian Banking system has made a significant progress. For the
healthy growth of the banking system in the country banking regulation Act, was passed in 1949.
According to this act Reserve Bank of India was authorized to control the banking system in
Country. In 1955, imperial Bank was nationalized and renamed as state Bank of India. This was
the first public sector bank in the country.
2
In July 1969, 14 major banks and in April 1980, 6 more banks were nationalized. The
total number of schedule banks was 358. In 1994, it comes down 76and between 1949 and 1959
as many as 388 banks have failed. To check this trend, amalgamation of banks was taken up in
1960. During the period of 1960 and 1970 as many as 212 banks were amalgamated. In 1951,
there were 470 non-scheduled Banks in country. In 1993 due to merger of New Bank with PNB,
the number of nationalized banks reduced to 19. There has been noticeable increase in the
branches of scheduled banks while that of non -scheduled banks have decreased. Scheduled
banks have opened most of their new branches in villages and sub-urban areas. In 1969, there
were 8,262 branches of scheduled Banks and in Jan, 2000 these increased up to 64,980. On 14
Nov 2002, New Delhi, PNB and BOI (Bank of India) decide to share their Automatic Teller
Machine (ATM). In March 2006, the RBI allowed Warburg Pincus to increase its stake in 'Kotak
Mahindra Bank' (a private sector bank) to 10%. This is the first time; an investor has been
allowed to hold more than 5% in a private sector bank. The RBI announced norms in 2005 that
any stake exceeding 5% in the private sector bank would need to be vetted by them. In 2007,
banking in India is generally fairly mature in terms of supply, product range but reach in rural
India still remain a challenge for private sector and foreign banks. State Bank of Saurashtra
merged with SBI w.e.f. August 13, 2008. With the growth in the Indian economy, demand for
banking services especially retail banking, mortgages and investment services are expected to be
strong.
CLASSIFICATION OF BANKS
All bank which are included in the second schedule of the Reserve Bank of India Act,
1934 are scheduled Banks. These banks comprise scheduled commercial banks and scheduled
co-operative banks. Scheduled commercial banks in India categorized into five different groups
according to their ownership. These bank groups are (i) State Bank of India and its Associates
(ii) Nationalized Banks (iii) Private Sector Banks (iv) Foreign Banks and (v) Regional Rural
Banks.
PRODUCTIVITY
Productivity is the key to prosperity of any nation. Productivity growth is a vital factor
for continuous economic growth and increase in standard of living. Every sector should strive
3
hard to enhance the productivity as the increase in productivity aims at efficient and effective
utilization of resources at the disposal of the nation or an organization whether local or global.
Although, there is all around efforts in most of the institutions and a vast experience gained by
people in various sectors, there is a dearth of knowledge on productivity concepts and related
experiences which are to be made available to all people in various sectors irrespective of their
level and contribution in their organization. Productivity measures a firm‟s performance over
time; efficiency measures a firm‟s performance relative to a benchmark at a given point in time.
Both measures are relevant in attempting a comparison between the private, public sectors and
foreign banks.
DEFINITION
Productivity is defined as the goods and services produced per unit of labour, capital or
both. The ratio of output to labour and capital is a total productivity measure. In simple words,
productivity is the output per unit of input employed.
Input
outputtyProductivi
Kopleman has defined productivity as the relationship between physical output of one or
more of the associated physical inputs used in production. When single input is used to measure
productivity, it is called „factor productivity‟ and when all factors are combined together for the
purpose, it is known as „total factor productivity.‟ It is common to see the terms „productivity‟
and „efficiency‟ being used interchangeably in literature. However, productivity is more a
measure of performance of labour, which is one of the factors of production. Efficiency, on the
other hand, is a much broader term which represents the performance of all factors of production.
In case of banks, while productivity measures the performance of their staff, efficiency
represents the combined performance of staff, capital and management. The concept and
definition of productivity as applied in manufacturing industries cannot be applied as such in
banking industry because it is primarily a service industry. In the field of banking, the various
products are accounts, drafts, exchange remittances, cheques, travellers cheques, credit cards,
4
debit cards, services for guarantees, various kinds of loans like housing loan, education loan, car
loan etc. Identification and measurement of output in banking is very difficult exercise as it is not
possible to bring various services to measure output. However, banking being an important
economic activity cannot afford to lose sight of the concept of productivity. Application of the
concept in the Indian banking industry becomes all the more difficult, as it gets associated with
such diverse aspects like operational cost effectiveness, profitability, customer services, priority
sector lending, mobilization of deposits, deployment of credit in rural and backward regions. But
as we know that banks are the mirror of an economy. Therefore better functioning of banking
sector may lead to the overall improvement of the economy. In fact, banks act as a link between
those who want to save and those who want to invest, so improvement in the productivity of the
banking sector is very much needed who want to save and obviously, difficulty is not in applying
the broader concept of productivity as ratio of output and input, but is in measuring output in the
form of services. The concept of productivity analysis in banking sector may give misleading
results, if not used carefully. Productivity at the national level is dependent on various factors
like per capita income, saving habits and banking habits. In addition to it, there are regional
variations which affect the productivity of various players in the banking field. So in order to
have a reliable idea of productivity, it is necessary to analyze every segment, different sizes of
banks and region wise positioning of banks.
HUMAN RESOURCE AND ITS SIGNIFICANCE
In this highly competitive world, success of any organization depends on its human
resource. Banks are no exception to this. A satisfied, happy and hardworking employee is the
biggest assets of any organization, including banks. Workforce of any bank is responsible to
large extent for its productivity and profitability. Efficient human resource management and
maintaining higher job satisfaction level in banks determine not only the performance of the
bank but also affect the growth and performance of the entire economy. So, for the success of
banking it is very important to manage human resource effectively and to find whether its
employees are satisfied or not only if they are satisfied, they will work with commitment and
project a positive image of the organization.
So in this competitive environment it is necessary to know the employees views toward
their job and to measure the level of satisfaction with various aspects of job satisfaction. The
5
employees of the bank are valuable assets to the bank. If they are highly satisfied they produce
more and it is profitable for the organization.
CONCEPT OF JOB SATISFACTION
Job satisfaction describes how content an individual is with his or her job. It is a
relatively recent term since in previous centuries the jobs available to a particular person were
often pre-determined by the occupation of that person‟s parent. There are a variety of factors that
can influence a person‟s level of Job satisfaction. Some of these factors include the level of pay
and benefits, the promotion system within a company, the quality of the working condition,
leadership and social relationships and the job itself. Job satisfaction is an integral component of
organization climate and an important element in the management employee‟s relationship. Job
satisfaction means individuals emotional reaction to job it. It is a positive emotional state that
occurs when a person‟s job seem to fulfill important job values provided. If people are satisfied
their job, then they will become happy and more devoted to their job. Job satisfaction is not the
same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction and
performance methods include job rotation, Job enlargement and Job enrichment. Other
influences on satisfaction include the management style and culture, employee involvement,
empowerment and autonomous workgroups. Job satisfaction is a very important attribute which
is frequently measured by organizations.
A job satisfaction is a positive attitude toward one's Job. A few important definitions on
job satisfactions are produced here.
Locke defined job satisfaction as “A pleasurable or positive emotional state resulting
from the appraisal of one's job or job experience."
Feldman and Arnold defined job satisfaction as "Job satisfaction will be defined as the
amount of overall positive affect that individuals have towards their jobs."
Davis and Newstrom defined job satisfaction as "Job satisfaction is a set of favorable or
unfavorable feelings with which employees view their work".
Thus, job satisfaction means good or positive attitude or feeling toward one's job. It is
important to mention that an individual may hold different attitudes toward various aspects of the
job. Characteristics of individuals also influence, job satisfaction. Individuals with high positive
affectivity are more likely to be satisfied with their jobs.
6
RESEARCH METHODOLOGY
This chapter explains the research methodology being followed to carry out the study. It
includes rationale of the study, research designs, objectives, hypothesis, and scope of the study,
source of data, research instruments, sample design, sample size, statistical techniques, and
limitations of the study and chapter scheme. A precise description of these aspects is explained
below:
RATIONALE OF THE STUDY
Productivity gains in the banking industry are very important for providing supportive
financial infrastructure for economic development. Productivity of the banks has been regarded
as crucial areas for a country‟s economic development. The economic reform process has started
in 1991 and posed a challenge to banker as never before. After liberalization, various new private
sector banks and foreign banks have joined the banking industry in India. This study examines
the productivity of public, private and foreign banks. There are large numbers of studies which
compare the productivity of public and private sector banks. However, only a few studies have
focused on productivity comparison of three sectors: public, private and foreign banks.
Secondly, this study also examines the job satisfaction of bank employees. To provide
better product and services to customers and serve them in better way, skills and commitment of
employees are required. The organization that does the things better and before others can avail
the opportunities and that will become the leader in the market. The importance of manpower
cannot be ignored in present competitive situation. Over and above the output given by them
contribute a lot in the progress of the banking sector. So, to achieve that job satisfaction of
employee plays an important role. Committed and better performance of every individual is
needed in attaining the objectives of the organization. Therefore, output per person, system,
machine etc. is required and that is called productivity. Productivity is a very important
parameter to measure the performance of a bank. Job satisfaction plays a pivotal role in the
performance of the employeein the organisation. So, I decided to study Productivity of Indian
Commercial Banks and Job Satisfaction of Employees.
7
RESEARCH PROBLEM
There is lot of literature on productivity of Indian commercial banks. But majority of the
study are based on sample or focus on only the one sector e.g. public or private. There are few
studies which study the whole population i.e. all public, private and foreign banks. The current
research is based on the whole population of public, private and foreign commercial banks. The
primary objective of the study is to examine the productivity of Indian commercial banks
(public, private and foreign banks). There are three major ingredients that contribute to
productivity excellence, viz. Technology, Processes and People. Human resource is the most
important asset of an organization and banking business is no exception to it. The review of
literature carried out in chapter-2 has brought out some important facts and issues of banking
sector in India. The present research problem is “An Analytical Study on Productivity of
Indian Commercial Banks and Job Satisfaction of Employees”.
OBJECTIVES OF THE STUDY
The main objective of the study is to examine the productivity of Indian commercial
banks and job satisfaction of bank employees. The other objectives are as follow:
To study and compare the productivity of public, private and foreign commercial
banks during the study period 2001-02 to 2011-12.
To indentify the various factors affecting the productivity of Indian scheduled
commercial banks (public, private and foreign banks).
To measure the extent of job satisfaction among employees of Indian scheduled
commercial banks (public and private sector banks).
To find out differences in the level of job satisfaction between the employees of
public sector banks and private sector banks.
To make suggestions to bank management for enhancing the satisfaction level of
bank employees and productivity of banks.
8
HYPOTHESIS OF THE STUDY
Keeping in view survey of literature and objectives of the study, the following hypotheses
are framed:
There is no significant difference in productivity of public, private and foreign banks
during the study period 2001-02 to 2011-12.
There is no significant difference between the employees of public sector and private
sector banks regarding various aspect of job satisfaction.
SCOPE OF THE STUDY
As far as scope of the study concerned, for productivity analysis it covers all the 26
public sector banks, 20 private sectors banks and 41 foreign banks functioning in India. For job
satisfaction analysis it covers 4 banks, two of them public sector bank and two private sector
banks in Haryana state. The state of Haryana is decided as the sample area for the study. The
reason for selecting Haryana as the sample area is in consideration of the existence of a well-
organized and large network of banks. The private sector banks also have a very good presence
in the state. The five districts are selected out of twenty one districts of Haryana and these are
Gurgaon, Ambala, Kurukshetra, Karnal and Kaithal.
RESEARCH DESIGN
This study used descriptive cum diagnostic type of research design. This study is
descriptive because it studies about the productivity of Indian commercial banks and job
satisfaction of employees. On the other hand it is diagnostic because it studies the causes of
productivity of Indian commercial banks.
The next step is to design the research in such a manner that the requisite data can be
collected and analyzed. It is an arrangement of various aspect of research design with regards to
the type of investigation, the unit of analysis, sampling design, data collection method and data
analysis process.
9
DATA COLLECTION METHOD
This study is based on primary as well as secondary data. Secondary data was used to
understand the emerging trends regarding productivity of public, private and foreign banks. The
primary data was collected to measure satisfaction level among public and private bank
employees.
Secondary Data
The secondary data has formed the major source of study. The data regarding branches,
profit, advances, deposit, employee and business etc. have been collected from the statistical
table related to banks, report on trend and progress of banking in India, RBI bulletins, SBI
monthly review, CMIE data base prowess and other research Journals. The time period of the
study is divided into two sub-periods.
Pre Global Financial Crisis Period (2002-2007): This was the growth phase when the
impact of reforms was fully felt. This period was characterized by technology up
gradation by banks, benefit of global liquidity and a period of growth. This was also the
phase of build-up of risks due to the irrational exuberance exhibited by market players.
Post Global Financial Crisis Period (2008-2012): This phase is dominated by the global
financial crisis and post crisis pains. The risks building up in the previous phase
crystallized during this period. The period is also characterized by reforms fatigue, lack
of banking penetration, absence of internal reforms and ineffective structure, systems and
people.
Primary Data
The primary data have been collected through questionnaire as well as interviews. The
data on job satisfaction was collected through standardized questionnaire which was taken from
the study of Dr. Hawa Singh on “Organisational Health of Haryana Tourism Corporation in
Relation to Commitment, Job Satisfaction and Some Allied Attributes”. It contains 36 statements
concerning various aspect of employee satisfaction measured on 3 point ordinal scale ranging
from agree, disagree and undecided.
10
SAMPLE DESIGN
For the purpose of collecting primary data 4 commercials banks, 2 public sectors and 2
private sector banks namely State Bank of India and Punjab national Bank, HDFC Bank and
Axis Bank was taken as sample. The banks were selected on the basis of no. of employees. The
bank which has highest number of employees in 2012 is selected. To measure the extent of job
satisfaction, it is logical to choose no. of employee as a base to select the bank. The branches of
these banks are selected on the basis of their availability in the state of Haryana. The five
districts are selected out of twenty one districts of Haryana and these are Gurgaon, Ambala,
Kurukshetra, Karnal and Kaithal. A total of 120 employees of selected banks 30 from each bank
have been approaches to ascertain their views on job satisfaction. The judgmental sampling is
used while selecting the employee of banks.
TABLE 1: SELECTION OF SAMPLE
Rank Public Sector Banks No. of Employees Rank Private sector Banks No. of Employees
1 SBI 2,15,481 1 HDFC 66,076
2 PNB 57,997 2 Axis Bank 31,738
Source: Report on trend and progress of Banking in India, RBI www.rbi.org.in (2002-2012)
STATISTICAL TECHNIQUES USED
The secondary and primary data was analyzed by using various statistical techniques. In
order to study the employee productivity, branch productivity aspect and relatives performance
of various banks 8 parameters have been applied:
Per Employee Indicators (Employee Productivity)
1. Net profit per employee 2. Business per employee
3. Deposit per employee 4. Advance per employee
5. Total income per employee 6. Total expenditure per employee
7. Spread per employee 8. Burden per employee
Per Branch Indicators (Branch Productivity)
1. Net Profit per Branch 2. Business per Branch
3. Deposits per branch 4. Advance per Branch
5. Total Income per Branch 6. Total Expenditure per Branch
7. Spread per Branch 8. Burden per Branch
11
To interpret and analyze the tables descriptive statistics like arithmetic mean, standard
deviation and coefficient of variation has been used. The exponential growth rate has been
computed to know the long term potential of a bank in business. Exponential growth as the effect
of compound growth over a long period of time and exponential growth is average year-on-
year growth rate over a number of years. In order to judge the overall performance of all the
scheduled commercial banks in India, it becomes imperative to know the relative efficiency of
each sector. For this purpose, Herfindhal‟s index of concentration has been computed. Further
overall performance of 3 sectors (public, private and foreign banks) is evaluating through
CAMEL Model. It is a management tool that measures capital adequacy, assets quality, and
efficiency of management, earnings‟ quality and liquidity of financial institutions.
After collection of primary data coding of responses was performed. Coding is the
process of assigning numerical codes or other character symbols. The data from questionnaire
was transferred to coding sheets and the same was manually keyed into the computer through
excel software program. The responses on statements concerning employee satisfaction towards
banks employees were measured on 3 point scale with 0 denoting “disagree”, 1 denoting
“undecided” and 2 denoting “agree”. The raw data was then exported to statistical package for
social sciences (SPSS) Data Editor 16.0 for further analysis. In order to analysis the data
collected from survey, statistical tools viz. descriptive analysis, factor analysis and student t-test
were used. Factor Analysis technique was used to reduce the number of attributes affecting
employee satisfaction. The factor analysis approach consists of statistical procedure which can
be applied to a set of variables to discover which variable from coherent clusters, are relatively
independent of one another. The variables that are correlated with one another, but largely
independent of other clusters of variables, are combined into factors. A factor, in factor analysis,
is considered to be linear combination of interrelated variables. Factors are thought to reflect
underlying processes which generate correlation among variables. A factor analysis is used to
summarize patterns of correlations among observed variables and to reduce the number of
observed variable to a smaller number of factors. Since variable involved in the present study
(job satisfaction) are numerous, there was a need to find out the main factors concerned with
employee satisfaction. To determine the significant difference between means of two groups
(public and private banks) t-test was applied.
12
The details of the statistical technique used are as follows:
Mean (Arithmetic Mean)
Mean ( X ) = X / N Where X = Sum of series of observations, N = Number of items.
Standard Deviation
S.D. (σ) = x2 / N Where x = (Xi- X ), N = Number of items, X = Mean of series,
(Xi- X )= deviation from the mean, Xi = ith values of the variable
X.
Coefficient of variation (CV)
CV = (σ/ X ) × 100 Where σ is Standard Deviation (S.D.) and X is the mean of the series.
Exponential Growth Rate
100
t
Yfirst
YlastLN
EGR Where LN = Natural Logarithm, t = Number of years.
Herfindhal Index of Concentration
t-test
t = X 1- X 2 / (ŝ n1n2/n1+n2) Where n1 = 1st Sample Size, n2= 2
nd Sample Size,
X 1=Sample mean (1st sample) X 2= Sample mean (2
nd
sample),
ŝ = Modified Standard deviation of the sample.
LIMITATION OF THE STUDY
The limitations of the research study are:
Inspite of my best efforts, the foreign banks refused to approach the employees for the
purpose of filling questionnaire of job satisfaction. So, without responses from foreign
banks employees job satisfaction of foreign banks employees can‟t be included in the
study.
There was possibility of personal bias of respondents. However, special care was taken to
get unbiased responses from banks employees. The purpose of the study was clearly
explained to them. Further it was assured to them that the data and findings will be used
for academic purpose only.
13
To get adequate responses from bank employees is difficult task because of their busy
scheduled.
The primary study has been confined only to Haryana state. The primary data collection
was restricted to only four banks, two of them public sector bank and two private sector
banks. It suggested that in order to generalize the findings to the banking industry in
India, the study should be expanded to include other private and public sector banks.
Another limitation of the study was non-coporative attitude of the employees.
CHAPTER SCHEME
The research study is divided into five chapters.
Chapter 1 Introduction:
It describes the concepts and emerging scenario of banking sector in India, productivity,
job satisfaction of employee and other topic related to the study.
Chapter 2 Literature Review:
It presents a review of the relevant research literature concerning various aspects of
objectives of the present study.
Chapter 3 Research Methodology:
It presents research methodology of research in which detailed discussion of research
design is given.
Chapter 4 Analysis and Interpretation:
It contains the result of the study about the productivity of Indian scheduled commercial
banks and job satisfaction of employees.
Chapter 5 Findings, Suggestions and Recommendations:
It presents the findings of the study with discussion on the findings, implications of the
results and recommended future areas of work.
14
FINDINGS
Finding Related To Employee Productivity of Public Sector Banks
The main findings relating to employee productivity of public sector banks of the study are as
follow:
On the basis of mean of profit per employee IDBI Ltd., Corporation Bank, Oriental Bank
of Commerce, Andhra Bank and Bank of Baroda are top five banks while State Bank of
Mysore, Punjab & Sind Bank, Syndicate Bank, UCO Bank and United Bank of India are
lowest five banks. The highest consistency (low value of coefficient of variation) in profit
per employee productivity was found in IDBI Ltd. followed by Oriental Bank of
Commerce, State Bank of Patiala, Indian Overseas Bank and Corporation Bank while
lowest consistency (high value of coefficient of variation) was found in Bank of Baroda,
Dena Bank, Bank of Maharashtra, Punjab & Sind Bank and Central Bank of India.
On the basis of mean of business per employee IDBI Ltd., Oriental Bank of Commerce,
Corporation Bank, Bank of Baroda, Bank of India are top five banks while Indian Bank,
United Bank of India, State Bank of Mysore, State Bank of India (SBI) and State Bank of
Bikaner and Jaipur are lowest five banks. The highest consistency (low value of
coefficient of variation) in business per employee productivity was found in IDBI Ltd.
followed by Canara Bank, State Bank of Patiala, Oriental Bank of Commerce and State
Bank of India (SBI) while lowest consistency (high value of coefficient of variation) was
found in United Bank of India, Indian Bank, Bank of Maharashtra, Punjab & Sind Bank
and Central Bank of India.
On the basis of mean of deposit per employee IDBI Ltd. followed by Oriental Bank of
Commerce, Corporation Bank, Bank of Baroda, Union Bank of India are top five banks
while Central Bank of India, United Bank of India, State Bank of Mysore, State Bank of
India (SBI) and State Bank of Bikaner and Jaipur are lowest five banks. The highest
consistency (low value of coefficient of variation) in deposit per employee productivity
was found in IDBI Ltd., Bank of Maharashtra, State Bank of Patiala, Oriental Bank of
Commerce and State Bank of India (SBI) while lowest consistency (high value of
coefficient of variation) was found in United Bank of India, Indian Bank, Bank of India,
Punjab & Sind Bank and Bank of Baroda.
15
On the basis of mean of advances per employee IDBI Ltd., Corporation Bank, Oriental
Bank of Commerce, Bank of Baroda and Union Bank of India are top five banks while
Bank of Maharashtra, State Bank of Bikaner and Jaipur, State Bank of Mysore, Central
Bank of India and United Bank of India are lowest five banks. The highest consistency
(low value of coefficient of variation) in advances per employee productivity was found
in IDBI Ltd. followed by Oriental Bank of Commerce, State Bank of Patiala, State Bank
of Travancore and State Bank of India while lowest consistency (high value of coefficient
of variation) was found in Bank of Baroda, United Bank of India, Punjab & Sind Bank,
Indian Bank and Central Bank of India.
On the basis of mean of total income per employee IDBI Ltd., Corporation Bank,
Oriental Bank of Commerce, Union Bank of India and Andhra Bank are top five banks
while Bank of Maharashtra, State Bank of Bikaner and Jaipur, State Bank of Mysore,
Central Bank of India and United Bank of India are lowest five banks. The highest
consistency (low value of coefficient of variation) in total income per employee
productivity was found in IDBI Ltd. followed by State Bank of India, Bank of
Maharashtra, Oriental Bank of Commerce and State Bank of Travancore while lowest
consistency (high value of coefficient of variation) was found in Bank of India, UCO
Bank, Punjab National Bank, Indian Bank and Punjab & Sind Bank.
On the basis of mean of total expenses per employee (low expenses per employee) IDBI
Ltd., Corporation Bank, Oriental Bank of Commerce, Vijaya Bank and State Bank of
Patiala are top five banks while Bank of Maharashtra, Central Bank of India, State Bank
of Bikaner & Jaipur, State Bank of Mysore and United Bank of India are lowest five
banks. The highest consistency (low value of coefficient of variation) in total expenses
per employee productivity was found in IDBI Ltd. followed by State Bank of India, Bank
of Maharashtra, State Bank of Hyderabad and Dena Bank while lowest consistency (high
value of coefficient of variation) was found in Corporation Bank, Central Bank of India,
Bank of India, Canara Bank and Punjab & Sind Bank.
On the basis of mean of spread per employee IDBI Ltd., Corporation Bank, Oriental
Bank of Commerce, Andhra Bank and Bank of Baroda are top five banks while Bank of
Maharashtra, Central Bank of India, UCO Bank, State Bank of Mysore and United Bank
of India are lowest five banks. The highest consistency (low value of coefficient of
16
variation) in spread per employee productivity was found in Corporation Bank followed
by State Bank of Patiala, State Bank of Travancore, Oriental Bank of Commerce and
Vijaya Bank while lowest consistency (high value of coefficient of variation) was found
in Punjab & Sind Bank, Allahabad Bank, UCO Bank, IDBI Ltd. and Indian Bank.
On the basis of mean of burden per employee (low burden per employee) Canara Bank,
State Bank of Patiala, State Bank of Hyderabad, Corporation Bank and IDBI Ltd. are top
five banks while Punjab & Sind Bank, Bank of Maharashtra, Syndicate Bank, Central
Bank of India and Indian Overseas Bank are lowest five banks. The highest consistency
(low value of coefficient of variation) in burden per employee productivity was found in
IDBI Ltd. followed by Syndicate Bank, United Bank of India, Indian Bank and Punjab
National Bank while lowest consistency (high value of coefficient of variation) was
found in Dena Bank, Bank of India, Corporation Bank, State Bank of Patiala and State
Bank of Hyderabad.
Finding Related To Employee Productivity of Private Sector Banks
The main findings relating to employee productivity of private sector banks of the study are as
follow:
On the basis of mean of profit per employee YES Bank, ICICI Bank, Axis Bank, HDFC
Bank and Indusind Bank are top five banks while Ratnakar Bank, Lakshmi Vilas Bank,
Catholic Syrian Bank, Dhanalakshmi Bank and Development Credit Bank are lowest five
banks. The highest consistency (low value of coefficient of variation) in profit per
employee productivity was found Development Credit Bank, ICICI Bank, Karnataka
Bank, Axis Bank and HDFC Bank while lowest consistency (high value of coefficient of
variation) was found in Catholic Syrian Bank, YES Bank, ING Vysya Bank, Ratnakar
Bank and Dhanalakshmi Bank.
On the basis of mean of business per employee YES Bank, ICICI Bank, Axis Bank,
HDFC Bank and Indusind Bank are top five banks while Ratnakar Bank, Catholic Syrian
Bank, Dhanalakshmi Bank, Nainital Bank and Kotak Mahindra Bank are lowest five
banks. The highest consistency (low value of coefficient of variation) in business per
employee productivity was found in Development Credit Bank, Axis Bank, HDFC Bank,
ICICI Bank and Kotak Mahindra Bank while lowest consistency (high value of
17
coefficient of variation) was found in South Indian Bank, YES Bank, Catholic Syrian
Bank, Tamilnad Mercantile Bank and Nainital Bank.
On the basis of mean of deposit per employee Indusind Bank, Axis Bank, YES Bank,
ICICI Bank and HDFC Bank are top five banks while Kotak Mahindra Bank, Nainital
Bank, Dhanalakshmi Bank, Catholic Syrian Bank and Ratnakar Bank are lowest five
banks. The highest consistency (low value of coefficient of variation) in deposit per
employee productivity was found in Axis Bank, Development Credit Bank, HDFC Bank,
ICICI Bank and Kotak Mahindra Bank while lowest consistency (high value of
coefficient of variation) was found in Karur Vysya Bank, Catholic Syrian Bank,
Tamilnad Mercantile Bank, Nainital Bank and YES Bank.
On the basis of mean of advances per employee ICICI Bank, YES Bank, Indusind Bank,
Axis Bank and HDFC Bank are top five banks while Development Credit Bank,
Dhanalakshmi Bank, Ratnakar Bank, Catholic Syrian Bank and Nainital Bank are lowest
five banks. The highest consistency (low value of coefficient of variation) in advances
per employee productivity was found in Development Credit Bank, HDFC Bank, Axis
Bank, Kotak Mahindra Bank and ICICI Bank while lowest consistency (high value of
coefficient of variation) was found in South Indian Bank, Catholic Syrian Bank, Nainital
Bank, Ratnakar Bank and Tamilnad Mercantile Bank.
On the basis of mean of total income per employee ICICI Bank, Ratnakar Bank, Indusind
Bank, YES Bank and Axis Bank are top five banks while City Union Bank, Lakshmi
Vilas Bank, Dhanalakshmi Bank, Nainital Bank and Catholic Syrian Bank are lowest five
banks. The highest consistency (low value of coefficient of variation) in total income per
employee productivity was found in Development Credit Bank, HDFC Bank, Axis Bank,
Indusind Bank and ING Vysya Bank while lowest consistency (high value of coefficient
of variation) was found in Lakshmi Vilas Bank, Federal Bank, Nainital Bank, YES Bank
and Ratnakar Bank.
On the basis of mean of total expenses per employee (low expenses per employee)
Lakshmi Vilas Bank, City Union Bank, Dhanalakshmi Bank, Catholic Syrian Bank and
Nainital Bank are top five banks while Ratnakar Bank, ICICI Bank, Indusind Bank, YES
Bank and Axis Bank are lowest five banks. The highest consistency (low value of
coefficient of variation) in total expenses per employee productivity was found in
18
Development Credit Bank, HDFC Bank, Axis Bank, Indusind Bank and ING Vysya
Bank while lowest consistency (high value of coefficient of variation) was found in
Nainital Bank, Dhanalakshmi Bank, Catholic Syrian Bank, YES Bank and Ratnakar
Bank.
On the basis of mean of spread per employee ICICI Bank, YES Bank, Axis Bank, HDFC
Bank, Indusind Bank are top five banks while Development Credit Bank, Lakshmi Vilas
Bank, Dhanalakshmi Bank, Catholic Syrian Bank, Ratnakar Bank are lowest five banks.
The highest consistency (low value of coefficient of variation) in spread per employee
productivity was found in Ratnakar Bank, HDFC Bank, Axis Bank, Indusind Bank and
Dhanalakshmi Bank while lowest consistency (high value of coefficient of variation) was
found in Nainital Bank, ICICI Bank, Lakshmi Vilas Bank, Federal Bank and YES Bank.
On the basis of mean of burden per employee ( low burden per employee) Karnataka
Bank, Axis Bank, Indusind Bank, ICICI Bank and Ratnakar Bank are top five banks
while Kotak Mahindra Bank, Development Credit Bank, HDFC Bank, Nainital Bank and
ING Vysya Bank are lowest five banks. The highest consistency (low value of coefficient
of variation) in burden per employee productivity was found in Indusind Bank, Axis
Bank, Ratnakar Bank, ICICI Bank and HDFC Bank while lowest consistency (high value
of coefficient of variation) was found in South Indian Bank, Federal Bank, City Union
Bank, YES Bank and Karnataka Bank.
Finding Related To Employee Productivity of Foreign Banks
The main findings relating to employee productivity of foreign banks of the study are as follow:
On the basis of mean of profit per employee JP Morgan Chase Bank, Bank of America,
Credit Agricole Bank, Barclays Bank and Bank of Nova Scotia are top five banks while
American Express Banking Co., Oman International Bank, JSC VTB Bank,
Commonwealth Bank of Australia, FirstRand Bank are lowest five banks. The highest
consistency (low value of coefficient of variation) in profit per employee productivity
was found in Oman International Bank, JSC VTB Bank, FirstRand Bank, Commonwealth
Bank of Australia and Standard Chartered Bank while lowest consistency (high value of
coefficient of variation) was found in Abu Dhabi Commercial Bank, Bank of Bahrain &
Kuwait, UBS AG, American Express Banking Co. and Chinatrust Commercial Bank.
19
On the basis of mean of business per employee Bank of Nova Scotia, Antwerp Diamond
Bank, Bank of America, Credit Agricole Bank and Bank of Tokyo Mitsubishi UFJ are
top five banks while Commonwealth Bank of Australia, American Express Banking Co.,
Bank International Indonesia, Sonali Bank, United Overseas Bank are lowest five banks.
The highest consistency (low value of coefficient of variation) in business per employee
productivity was found in United Overseas Bank, Citibank, Bank of Ceylon, Royal Bank
of Scotland and Bank of Bahrain & Kuwait while lowest consistency (high value of
coefficient of variation) was found in JSC VTB Bank, JP Morgan Chase Bank, Barclays
Bank, UBS AG and Bank International Indonesia.
On the basis of mean of deposit per Abu Dhabi Commercial Bank, JP Morgan Chase
Bank, Bank of Nova Scotia, DBS Bank and Bank of America are top five banks while
Bank International Indonesia, FirstRand Bank, JSC VTB Bank, Commonwealth Bank of
Australia and United Overseas Bank are lowest five banks. The highest consistency (low
value of coefficient of variation) in deposit per employee productivity was found in Bank
of Ceylon, Bank of Bahrain & Kuwait, Citibank, Royal Bank of Scotland and Antwerp
Diamond Bank while lowest consistency (high value of coefficient of variation) was
found Krung Thai Bank, Bank of Tokyo Mitsubishi UFJ, Bank International Indonesia,
Mashreq Bank, American Express Banking Co.
On the basis of mean of advances per employee Antwerp Diamond Bank, Bank of Nova
Scotia, Credit Agricole Bank, Bank of Tokyo Mitsubishi UFJ and Bank of America are
top five banks while AB Bank, Bank International Indonesia, Oman International Bank,
Sonali Bank and United Overseas Bank are lowest five banks. The highest consistency
(low value of coefficient of variation) in advances per employee productivity was found
in United Overseas Bank, Citibank, Royal Bank of Scotland, Bank of America and HSBC
while lowest consistency (high value of coefficient of variation) was found in UBS AG,
Oman International Bank, JP Morgan Chase Bank, Barclays Bank and Bank International
Indonesia.
On the basis of mean of total income per employee Credit Agricole Bank, JP Morgan
Chase Bank, UBS AG, Barclays Bank and Bank of America are top five banks while
Bank of Ceylon, Commonwealth Bank of Australia, JSC VTB BANK, AB Bank and
Sonali Bank are lowest five banks. The highest consistency (low value of coefficient of
20
variation) in total income per employee productivity was found in United Overseas Bank,
Citibank, Royal Bank of Scotland, Shinhan Bank and Sonali Bank while lowest
consistency (high value of coefficient of variation) was found in UBS AG, JP Morgan
Chase Bank, American Express Banking Co., Bank of Tokyo Mitsubishi UFJ and Bank
International Indonesia.
On the basis of mean of total expenses per employee (low expenses per employee) Bank
International Indonesia, JSC VTB Bank, Bank of Ceylon, AB Bank and Sonali Bank are
top five banks while Mashreq Bank, UBS AG, Credit Agricole Bank, Abu Dhabi
Commercial Bank and FirstRand Bank are lowest five banks. The highest consistency
(low value of coefficient of variation) in total expenses per employee productivity was
found in Commonwealth Bank of Australia, FirstRand Bank, Citibank, Royal Bank of
Scotland, United Overseas Bank while lowest consistency (high value of coefficient of
variation) was found in JSC VTB Bank, Abu Dhabi Commercial Bank, Bank of Tokyo
Mitsubishi UFJ, Bank International Indonesia and Mashreq Bank.
On the basis of mean of spread per employee UBS AG, JP Morgan Chase Bank, United
Overseas Bank, Credit Agricole Bank and Bank of America are top five banks while
Bank of Bahrain & Kuwait, AB Bank, American Express Banking Co., Oman
International Bank and Sonali Bank are lowest five banks. The highest consistency (low
value of coefficient of variation) in spread per employee productivity was found in
United Overseas Bank, Shinhan Bank, Antwerp Diamond Bank, Citibank and AB Bank
while lowest consistency (high value of coefficient of variation) was found in Bank
International Indonesia, Mizuho Corporate Bank, American Express Banking Co., Sonali
Bank and Oman International Bank.
On the basis of mean of burden per employee Bank of America, Bank International
Indonesia, Credit Agricole Bank, JP Morgan Chase Bank and Barclays Bank (low burden
per employee) are top five banks while UBS AG, United Overseas Bank, Mashreq Bank,
Commonwealth Bank of Australia and FirstRand Bank are lowest five banks. The highest
consistency (low value of coefficient of variation) in burden per employee productivity
was found in State Bank of Mauritius, Mizuho Corporate Bank, American Express
Banking Co., Oman International Bank and Standard Chartered Bank while lowest
21
consistency (high value of coefficient of variation) was found in Shinhan Bank, BNP
Paribas, HSBC, Mashreq Bank and Antwerp Diamond Bank.
Finding Related To Branch Productivity of Public Sector Banks
The main findings relating to branch productivity of public sector banks of the study are as
follow:
On the basis of mean of profit per employee IDBI Ltd., Corporation Bank, Oriental Bank
of Commerce, Bank of Baroda and State Bank of Travancore are top five banks while
Central Bank of India, Dena Bank, UCO Bank, Punjab & Sind Bank and United Bank of
India are lowest five banks. The highest consistency (low value of coefficient of
variation) in profit per branch productivity was found in Oriental Bank of Commerce,
State Bank of Patiala, Corporation Bank, State Bank of India (SBI) and Indian Overseas
Bank while lowest consistency (high value of coefficient of variation) was found in Bank
of Baroda, Dena Bank, Bank of Maharashtra, Punjab & Sind Bank and Central Bank of
India.
On the basis of mean of business per branch IDBI Ltd., Corporation Bank, Oriental Bank
of Commerce, Canara Bank and Bank of India are top five banks while Bank of
Maharashtra, Punjab & Sind Bank, Dena Bank, Allahabad Bank and United Bank of
India are lowest five banks. The highest consistency (low value of coefficient of
variation) in business per branch productivity was found in IDBI Ltd., Canara Bank, State
Bank of India (SBI), Union Bank of India and State Bank of Patiala while lowest
consistency (high value of coefficient of variation) was found in State Bank of Mysore,
Punjab & Sind Bank, Bank of Maharashtra, Allahabad Bank and Central Bank of India.
On the basis of mean of deposit per branch IDBI Ltd., Corporation Bank, Canara Bank,
Oriental Bank of Commerce and Bank of Baroda are top five banks while Allahabad
Bank, Dena Bank, United Bank of India, Central Bank of India, Bank of Maharashtra are
lowest five banks. The highest consistency (low value of coefficient of variation) in
deposit per branch productivity was found in State Bank of India (SBI), IDBI Ltd., Bank
of Maharashtra, State Bank of Patiala and Indian Overseas Bank while lowest
consistency (high value of coefficient of variation) was found in State Bank of Mysore,
Dena Bank, Bank of Baroda, Allahabad Bank and Punjab & Sind Bank.
22
On the basis of mean of advances per branch IDBI Ltd., Corporation Bank, Canara
Bank, Oriental Bank of Commerce and Bank of Baroda are top five banks while
Allahabad Bank, Dena Bank, Central Bank of India, Bank of Maharashtra and United
Bank of India are lowest five banks. The highest consistency (low value of coefficient of
variation) in advances per branch productivity was found in IDBI Ltd., State Bank of
Patiala, State Bank of India (SBI), Oriental Bank of Commerce and Canara Bank while
lowest consistency (high value of coefficient of variation) was found in Dena Bank, Bank
of Baroda, Allahabad Bank, United Bank of India and Punjab & Sind Bank.
On the basis of mean of total income per branch IDBI Ltd., Corporation Bank, Oriental
Bank of Commerce, State Bank of India (SBI) and Canara Bank are top five banks while
Allahabad Bank, Dena Bank, United Bank of India, Bank of Maharashtra and Central
Bank of India are lowest five banks. The highest consistency (low value of coefficient of
variation) in total income per branch productivity was found in IDBI Ltd., State Bank of
India (SBI), Bank of Maharashtra, Oriental Bank of Commerce and Indian Overseas
Bank while lowest consistency (high value of coefficient of variation) was found in
Punjab National Bank, UCO Bank, State Bank of Mysore, Punjab & Sind Bank and
Allahabad Bank.
On the basis of mean of total expenses per branch Allahabad Bank, Dena Bank, United
Bank of India, Central Bank of India and Bank of Maharashtra are top five banks while
IDBI Ltd., Oriental Bank of Commerce, Canara Bank, State Bank of India (SBI) and
Corporation Bank are lowest five banks. The highest consistency (low value of
coefficient of variation) in total expenses per branch productivity was found in State
Bank of India (SBI), IDBI Ltd., Bank of Maharashtra, Indian Bank and United Bank of
India while lowest consistency (high value of coefficient of variation) was found in
Corporation Bank, State Bank of Patiala, State Bank of Mysore, Allahabad Bank and
Punjab & Sind Bank.
On the basis of mean of spread per branch IDBI Ltd., State Bank of India (SBI),
Corporation Bank, Oriental Bank of Commerce and Bank of Baroda are top five banks
while UCO Bank, Dena Bank, Bank of Maharashtra, United Bank of India and Central
Bank of India are lowest five banks. The highest consistency (low value of coefficient of
variation) in profit per employee productivity was found in Corporation Bank, Vijaya
23
Bank, Indian Overseas Bank, State Bank of Patiala and Oriental Bank of Commerce
while lowest consistency (high value of coefficient of variation) was found in UCO Bank,
State Bank of Mysore, Indian Bank, Allahabad Bank and IDBI Ltd.
On the basis of mean of burden per branch IDBI Ltd., Dena Bank, State Bank of
Hyderabad, Corporation Bank and State Bank of Patiala are top five banks while State
Bank of India (SBI), Syndicate Bank, Indian Overseas Bank, Punjab & Sind Bank and
Bank of Maharashtra are lowest five banks. The highest consistency (low value of
coefficient of variation) in burden per branch productivity was found in IDBI Ltd.,
Syndicate Bank, Indian Bank, United Bank of India and Punjab National Bank while
lowest consistency (high value of coefficient of variation) was found in Dena Bank, Bank
of India, State Bank of Patiala, State Bank of Hyderabad and Corporation Bank.
On the basis of mean and coefficient variation the branch productivity (considering all
eight indicators) of IDBI Ltd. was highest and consistent in public sector banks during
2001-12. The IDBI Ltd., Oriental Bank of Commerce, State Bank of India (SBI), State
Bank of Patiala, Canara Bank are top five banks and Dena Bank, United Bank of India,
Andhra Bank, Central Bank of India and Punjab & Sind Bank are lowest five banks
regarding branch productivity in public sector banks during the study period.
Finding Related To Branch Productivity of Private Sector Banks
The main findings relating to branch productivity of private sector banks of the study are as
follow:
On the basis of mean of profit per branch YES Bank, ICICI Bank, Kotak Mahindra Bank,
Axis Bank and HDFC Bank are top five banks while Ratnakar Bank, Lakshmi Vilas
Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Development Credit Bank are
lowest five banks. The highest consistency (low value of coefficient of variation) in profit
per employee productivity was found Development Credit Bank, Kotak Mahindra Bank,
Karnataka Bank, Axis Bank and HDFC Bank while lowest consistency (high value of
coefficient of variation) was found in Catholic Syrian Bank, Indusind Bank, ING Vysya
Bank, Ratnakar Bank and Dhanalakshmi Bank.
On the basis of mean of business per branch YES Bank, ICICI Bank, Axis Bank, HDFC
Bank and Indusind Bank are top five banks while Ratnakar Bank, Lakshmi Vilas Bank,
24
Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are lowest five banks. The
highest consistency (low value of coefficient of variation) in business per branch
productivity was found Development Credit Bank, Kotak Mahindra Bank, Indusind
Bank, Axis Bank and HDFC Bank while lowest consistency (high value of coefficient of
variation) was found in ICICI Bank, Lakshmi Vilas Bank, Nainital Bank, Ratnakar Bank
and Dhanalakshmi Bank.
On the basis of mean of deposit per branch YES Bank, ICICI Bank, Axis Bank, HDFC
Bank and Indusind Bank are top five banks while Lakshmi Vilas Bank, Catholic Syrian
Bank, Dhanalakshmi Bank, Nainital Bank and Ratnakar Bank are lowest five banks. The
highest consistency (low value of coefficient of variation) in deposit per employee
productivity was found in Axis Bank, Development Credit Bank, HDFC Bank, ICICI
Bank and Kotak Mahindra Bank while lowest consistency (high value of coefficient of
variation) was found in Karur Vysya Bank, Catholic Syrian Bank, Tamilnad Mercantile
Bank, Nainital Bank and YES Bank.
On the basis of mean of advances per branch YES Bank, ICICI Bank, Axis Bank, Kotak
Mahindra Bank and Indusind Bank are top five banks while Ratnakar Bank, Lakshmi
Vilas Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are lowest five
banks The highest consistency (low value of coefficient of variation) in advances per
branch productivity was found Kotak Mahindra Bank, Development Credit Bank,
Indusind Bank, Axis Bank and HDFC Bank while lowest consistency (high value of
coefficient of variation) was found in Lakshmi Vilas Bank, Tamilnad Mercantile Bank,
Nainital Bank, Ratnakar Bank and Dhanalakshmi Bank.
On the basis of mean of total income per branch YES Bank, ICICI Bank, Axis Bank,
Indusind Bank and Kotak Mahindra Bankare top five banks while South Indian Bank,
Lakshmi Vilas Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are
lowest five banks. The highest consistency (low value of coefficient of variation) in total
income per branch productivity was found Development Credit Bank, Yes Bank, Kotak
Mahindra Bank, Axis Bank and HDFC Bank while lowest consistency (high value of
coefficient of variation) was found in City Union Bank, Nainital Bank, Dhanalakshmi
Bank, Ratnakar Bank and Dhanalakshmi Bank.
25
On the basis of mean of total expenses per branch South Indian Bank, Lakshmi Vilas
Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are top five banks
while YES Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Indusind Bank are
lowest five banks. The highest consistency (low value of coefficient of variation) in total
expenses per branch productivity was found Yes Bank, Development Credit Bank,
Indusind Bank, Axis Bank and HDFC Bank while lowest consistency (high value of
coefficient of variation) was found in City Union Bank, Karur Vysya Bank, Lakshmi
Vilas Bank, Dhanalakshmi Bank and Ratnakar Bank.
On the basis of mean of spread per branch Kotak Mahindra Bank, YES Bank, ICICI
Bank, Axis Bank, and HDFC Bank are top five banks while Ratnakar Bank, Lakshmi
Vilas Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are lowest five
banks. The highest consistency (low value of coefficient of variation) in spread per
branch productivity was found Ratnakar Bank, Kotak Mahindra Bank, Development
Credit Bank, HDFC Bank, and Axis Bank while lowest consistency (high value of
coefficient of variation) was found in City Union Bank, Federal Bank, South Indian
Bank, ING Vysya Bank, and Lakshmi Vilas Bank.
On the basis of mean of burden per branch Karnataka Bank, Axis Bank, Indusind Bank,
ICICI Bank and Ratnakar Bank are top five banks while Kotak Mahindra Bank, HDFC
Bank, Development Credit Bank, YES Bank, ING Vysya Bank are lowest five banks.
The highest consistency (low value of coefficient of variation) in spread per branch
productivity was found Indusind Bank, ICICI Bank, Ratnakar Bank, Axis Bank and
Nainital Bank while lowest consistency (high value of coefficient of variation) was found
in Federal Bank, City Union Bank, Yes Bank, Karnataka Bank and Dhanalakshmi Bank.
In private sector banks the branch productivity of Axis Bank, HDFC Bank, YES Bank,
Indusind Bank and Kotak Mahindra Bank Ltd. were highest and consistent and South
Indian Bank, Nainital Bank, Lakshmi Vilas Bank, Ratnakar Bank, Dhanalakshmi Bank
were lowest during the study period. The new private sector banks (seven Banks) branch
productivity is higher than old private sector banks (thirteen banks).
26
Finding Related To Branch Productivity of Foreign Banks
The main findings relating to branch productivity of foreign banks of the study are as follow:
On the basis of mean of profit per branch JP Morgan Chase Bank, Bank of America,
Deutsche Bank, Barclays Bank and Citibank are top five banks while United Overseas
Bank, Oman International Bank, JSC VTB Bank, Commonwealth Bank of Australia and
FirstRand Bank are lowest five banks. The highest consistency (low value of coefficient
of variation) in profit per branch productivity was found Oman International Bank, JSC
VTB Bank, FirstRand Bank, Commonwealth Bank of Australia and Mashreq Bank while
lowest consistency (high value of coefficient of variation) was found in Barclays Bank,
Bank International Indonesia, Bank of Bahrain & Kuwait, American Express Banking
Co. and Chinatrust Commercial Bank.
On the basis of mean of business per branch JP Morgan Chase Bank, Deutsche Bank,
Bank of America, Citibank and HSBC are top five banks while JSC VTB Bank, Mashreq
Bank, Sonali Bank, Bank International Indonesia and United Overseas Bank are lowest
five banks. The highest consistency (low value of coefficient of variation) in business per
branch productivity was found United Overseas Bank, Bank of Ceylon, Citibank, Bank of
Bahrain & Kuwait and Royal Bank of Scotland while lowest consistency (high value of
coefficient of variation) was found in Bank of Tokyo Mitsubishi UFJ, Bank International
Indonesia, UBS AG, JP Morgan Chase Bank and Barclays Bank.
On the basis of mean of deposit per branch JP Morgan Chase Bank, Citibank, DBS Bank,
Deutsche Bank and HSBC are top five banks while Sonali Bank, Bank International
Indonesia, JSC VTB Bank, Commonwealth Bank of Australia and United Overseas Bank
are lowest five banks. The highest consistency (low value of coefficient of variation) in
deposit per branch productivity was found United Overseas Bank, Bank of Ceylon, Royal
Bank of Scotland, Bank of Bahrain & Kuwait and Antwerp Diamond Bank while lowest
consistency (high value of coefficient of variation) was found in DBS Bank, JP Morgan
Chase Bank, Mashreq Bank, Bank International Indonesia and Barclays Bank.
On the basis of mean of advances per branch JP Morgan Chase Bank, Citibank, Bank of
Tokyo Mitsubishi UFJ, Bank of America and Bank of Nova Scotia are top five banks
while Krung Thai Bank, Oman International Bank, Bank International Indonesia, Sonali
27
Bank and United Overseas Bank are lowest five banks. The highest consistency (low
value of coefficient of variation) in advances per branch productivity was found United
Overseas Bank, Citibank, Royal Bank of Scotland, Bank of America and Bank of Ceylon
while lowest consistency (high value of coefficient of variation) was found in Barclays
Bank, Oman International Bank, UBS AG, Bank International Indonesia and JP Morgan
Chase Bank.
On the basis of mean of total income per branch JP Morgan Chase Bank, Bank of
America, Deutsche Bank, Barclays Bank and Citibank are top five banks while United
Overseas Bank, Krung Thai Bank, JSC VTB Bank, Bank International Indonesia and
Sonali Bank are lowest five banks. The highest consistency (low value of coefficient of
variation) in total income per branch productivity was found Deutsche Bank, United
Overseas Bank, Bank of Ceylon,Royal Bank of Scotland and Sonali Bank while lowest
consistency (high value of coefficient of variation) was found in DBS Bank, Bank
International Indonesia, UBS AG, Mizuho Corporate Bank and JP Morgan Chase Bank.
On the basis of mean of total expenses per branch JSC VTB Bank AB Bank, Krung Thai
Bank, Bank International Indonesia, Sonali Bank and FirstRand Bank (low expenses per
branch) are top five banks while JP Morgan Chase Bank, American Express Banking Co.,
Barclays Bank, UBS AG and Deutsche Bank are lowest five banks. The highest
consistency (low value of coefficient of variation) in total expenses per branch
productivity was found United Overseas Bank, Bank of Ceylon, FirstRand Bank,
Commonwealth Bank of Australia and Bank of Bahrain & Kuwait while lowest
consistency (high value of coefficient of variation) was found in Bank International
Indonesia, JP Morgan Chase Bank, Barclays Bank, DBS Bank and Mashreq Bank.
On the basis of mean of spread per branch JP Morgan Chase Bank, UBS AG, Citibank,
Barclays Bank and Deutsche Bank are top five banks while AB Bank, Mashreq Bank,
Oman International Bank and Sonali Bank are lowest five banks. The highest
consistency (low value of coefficient of variation) in spread per branch productivity was
found AB Bank, United Overseas Bank, Royal Bank of Scotland, Commonwealth Bank
of Australia and Antwerp Diamond Bank while lowest consistency (high value of
coefficient of variation) was found in Barclays Bank, JP Morgan Chase Bank, Mizuho
Corporate Bank, Sonali Bank and Oman International Bank.
28
On the basis of mean of burden per branch Bank of Nova Scotia, Credit Agricole Bank,
Barclays Bank, Bank of America and JP Morgan Chase Bank (low burden per branch)
are top five banks while UBS AG, FirstRand Bank, Commonwealth Bank of Australia,
DBS Bank and Royal Bank of Scotland are lowest five banks. The highest consistency
(low value of coefficient of variation) in burden per branch productivity was found State
Bank of Mauritius, Bank International Indonesia, Oman International Bank, Mizuho
Corporate Bank and Barclays Bank while lowest consistency (high value of coefficient of
variation) was found in BNP Paribas, American Express Banking Co., HSBC, Mashreq
Bank and Antwerp Diamond Bank.
FINDING RELATED TO EMPLOYEE PRODUCTIVITY OF INDIAN
SCHEDULED COMMERCIAL BANKS
The main findings relating to employee productivity of Indian scheduled commercial banks of the
study are as follow:
The profit per employee productivity was highest of Foreign Banks followed by private
sector banks and public sector banks. The decrease in concentration index shows that the
competition among the banks has increased. The lower dependence on deposits as well as
access to low cost deposits enabled foreign banks to register higher profits than other
bank groups in India.
The business per employee productivity was highest of Foreign Banks followed by
private sector banks and public sector banks. The private banks have highest business per
employee for eight years up to 2009 than public sector banks. The decrease in
concentration index shows that the competition among the banks has increased. The
foreign bank has highest business per employee because they are able to access
sufficiently low cost fund and able to deploy funds with higher returns. The Report on the
Committee on Financial Sector Assessment (CFSA), RBI in 2009 noted that „the
relatively higher productivity ratios of new PrSBs and FBs in terms of business per
employee could be due to increased mechanization, lower staff strength and increased
outsourcing activities as compared to PSBs. PSBs have a legacy of labour-intensive work
procedures and greater penetration in rural areas, which also result in comparatively low
business per employee.
29
The deposit per employee productivity was highest of foreign banks followed by private
sector banks and public sector banks. The private banks have highest deposit per
employee for seven years up to 2008 than public sector banks. The decrease in index
shows the increase in the competition between the banks regarding deposit per employee.
The advance per employee productivity was highest of Foreign Banks followed by
private sector banks and public sector banks. The private banks have highest advances
per employee for eight years up to 2009 than public sector banks. The decrease in index
shows the increase in the competition between the banks regarding advances per
employee.
The total income per employee productivity was highest of Foreign Banks followed by
private sector banks and public sector banks. The decrease in index shows the increase in
the competition between the banks regarding total income per employee. The total
income per employee of foreign is higher because foreign banks have well diversification
of income.
The total expense per employee productivity was highest of Foreign Banks followed by
private sector banks and public sector banks. The private banks have highest total
expense per employee except in three years from 2006 to 2008 than public sector banks.
The decrease in index shows the increase in the competition between the banks regarding
total expense per employee. Foreign banks incurred relatively higher expenditure than
other bank groups for managing their assets. The possible reason for these high operating
expenses of Foreign banks because these banks generally spend more for technology up-
gradation, on costly real estate, salaries and also for advertisement and publicity. Though
this spending may impinge upon their profits in the short run, it may yield a high
dividend in the long run.
The spread per employee productivity was highest of Foreign Banks followed by private
sector banks and public sector banks. The decrease in index shows the increase in the
competition between the banks regarding spread per employee. FBs gained on account of
the higher difference between cost of funds and return on funds, i.e., higher spread.
The private sector banks are on the top position regarding low burden per employee then
followed by foreign and public sector banks. The decrease in index shows the increase in
the competition between the banks regarding burden per employee.
30
The employee productivity (considering 8 indicators) of foreign banks is highest then
private and public sector banks. Thus, we found that even with the highest expenses per
employee, foreign banks report higher profit per employee than the other bank groups
(public and private). However, when we assess the other productivity indicators, foreign
banks are well placed than the other bank groups in India.
It might well be possible that foreign bank entry has both positive and negative effects on
domestic banks (public and private banks). On the positive side, technology spillovers of
new banking techniques and better management practices may lead domestic banks to
initially raise their costs in order to implement such practices. However, over time, as
such practices get imbibed in domestic banks; they are able to proactively compete with
their foreign counterparts. At the same time, with increased competition arising out of
foreign bank entry, there might be a switch of good-quality customers to foreign banks,
which, over time, would get reflected in a weakening of loan portfolio of domestic banks.
This would, in effect, necessitate higher loan loss provisioning by domestic banks (i.e.,
higher costs).
FINDING RELATED TO BRANCH PRODUCTIVITY OF INDIAN
SCHEDULED COMMERCIAL BANKS
The main findings relating to branch productivity of Indian scheduled commercial banks of the
study are as follow:
The profit per branch productivity was highest of Foreign Banks followed by private
sector banks and public sector banks. The decrease in concentration index shows that the
competition among the banks has increased. The lower dependence on deposits as well as
access to low cost deposits enabled FBs to register higher profits than other bank groups
in India.
The business per branch productivity was highest of Foreign Banks followed by private
sector banks and public sector banks. The private banks have highest business per branch
than public sector banks. The decrease in concentration index shows that the competition
among the banks has increased. The foreign bank has highest business per branch
because they are able to access sufficiently low cost fund and able to deploy funds with
higher returns.
31
The deposit per branch productivity was highest of Foreign Banks followed by private
sector banks and public sector banks. The private banks have highest deposit per branch
than public sector banks. The decrease in index shows the increase in the competition
between the banks regarding deposit per branch.
The advance per branch productivity was highest of Foreign Banks followed by private
sector banks and public sector banks. The private banks have highest advances per branch
than public sector banks. The decrease in index shows the increase in the competition
between the banks regarding advances per branch.
The total income per branch productivity was highest of Foreign Banks followed by
private sector banks and public sector banks. The decrease in index shows the increase in
the competition between the banks regarding total income per branch. The total income
per branch of foreign is higher because foreign banks have well diversification of income.
The total expense per branch productivity was highest of Foreign Banks followed by
private sector banks and public sector banks. The private banks have highest total
expense per branch than public sector banks. The decrease in index shows the increase in
the competition between the banks regarding total expense per branch. So, on the basis of
expenses per branch public sector banks are on the top position.
The spread per branch productivity was highest of Foreign Banks followed by private
sector banks and public sector banks. The decrease in index shows the increase in the
competition between the banks regarding spread per branch. FBs gained on account of
the higher difference between cost of funds and return on funds, i.e., higher spread.
The private sector banks are on the top position regarding low burden per branch then
followed by public sector banks and foreign banks. The decrease in index shows the
increase in the competition between the banks regarding burden per branch.
The branch productivity (considering eight indicators) of foreign banks is highest then
private and public sector banks. Thus, we found that even with the highest expenses per
branch, and highest burden per branch, foreign banks report higher profit per branch than
the other bank groups (public and private). However, when we assess the other
productivity indicators, foreign banks are well placed than the other bank groups in India.
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FINDING RELATED TO COMPARISON OF PRODUCTIVITY OF OLD
AND NEW PRIVATE SECTOR BANKS
The employee and branch productivity of new private sector banks is higher than old
private sector banks due to better assets liability management, better customer
relationship management and technology up-gradation.
FINDING RELATED TO PRODUCTIVITY OF INDIAN COMMERCIAL
BANKS IN PRE-GLOBAL FINANCIAL CRISIS AND POST- GLOBAL
FINANCIAL CRISIS
The analysis for two different sub-periods reveals that in spite of global financial crisis,
Indian banks continue to show increasing trends in productivity. However, there is
evidence of shrink in the market resulting in less productivity (labour and branch) in post
global financial crisis period in case of foreign banks.
FINDING RELATED TO DEVELOPMENT FINANCIAL INSTITUTION
A broad policy framework was outlined in the Mid-Term Review of Monetary and Credit
Policy of 1999-2000 of RBI and DFIs were given the option to transform into a bank.
The operational guidelines for enabling a DFI to convert to a universal bank were issued
in 2001. Government repealed IDBI act and converted IDBI Ltd. into a banking company
in September, 2004. The productivity of IDBI Ltd. was highest in public sector banks.
FINDING RELATED TO BANK NETWORK
Geographical branch penetration score (37 branches per 1000 km2.) of SCBs in India as
on 31st March 2012 indicates that people have to travel considerable distance to avail
banking services in India. There has been considerable increase in bank branch expansion
in India, but, it is not in the proportion to increase in population in India.
FINDING RELATED TO PRODUCTIVITY ANALYSIS OF INDIAN
SCHEDULED COMMERCIAL BANKS: CAMEL MODEL
The main findings relating to productivity of Indian scheduled commercial banks of the study are
as follow:
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The analysis shows that the CRAR is very high in case of foreign banks and raked first.
The next place is of private banks and it is lowest in public sector banks among the
three sectors. On the basis of advances to assets ratio private sector banks was at the
first position followed by public banks and foreign banks. On the basis of group averages
of sub-parameters of capital adequacy private banks were at the top position followed by
foreign banks and public banks stood at the last position due to its poor performance in
CRAR.
In terms of assets quality the foreign banks was at the top position with group average
followed by private banks and public banks was positioned at last.
In context of management efficiency, foreign banks was at the top most position followed
by private banks and public banks positioned at last due to its poor performance in three
(TA/TD, PPE and BPE) sub parameters of management.
In terms of earning quality the foreign banks was at the top most position followed by
private banks and public banks positioned at last due to its poor performance in three
(OP/TA, NIM/TA and Return on assets) sub parameters of management.
In context of liquidity foreign banks was at the top most position followed by private
banks and public banks positioned at last due to its poor performance in two (Cash
deposit Ratio and Investment to deposit ratio) sub parameters liquidity.
Overall performance shows that foreign bank is ranked one followed by private banks
and public sector banks were at the bottom most position.
FINDING RELATED TO JOB SATISFACTION OF EMPLOYEES
The main findings relating to job satisfaction of employees are as follow:
Finding related to profile of respondents
Regarding profile of respondents, majority of them are males (79.2 per cent), female
being (20.8 per cent). It is found that 65.8 per cent of the respondents are married as in
comparison to only 34.2 per cent of unmarried respondent. 16.7 per cent of the
respondents fall in the age group of 18 to 25 years, followed by 52.5 per cent in the age
group of 25 to 35 years, whereas 1.7 per cent in the age group of 35 to 45 years and 29.2
per cent in the age group of 45 years and above. 69.2 per cent of respondents have the
total service experience of 1-15 years. Further, the sample had maximum representation
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from post- graduate (70 per cent), whereas there were 23.3 per cent of graduate
respondent. Further, 57.5 per cent of respondents were earning a monthly salary of
`32000-47000.
Finding related to Job Satisfaction
The factor analysis conducted on thirty six statements related to job satisfaction of banks
employees has yield thieteen factors. These factors explain 74.9 per cent of the total
variance. These factors are named as „Recognition by Top Management‟, „Job Aspect‟,
„Communication‟, „Nature of Job‟, „Role Clarity‟, „Performance Appraisal‟, „Job
Security‟, „Education Qualification‟, „Training‟, „Competent to Work‟ and
„Remuneration‟. These factors have been extracted by using principal components
analysis and varimax rotation.
Finding related to comparison of private and public sector banks regarding Job Satisfaction
There is significant difference between the employees of Public Sector and Private Sector
Banks regarding various aspects of Job satisfaction. Thus, null hypothesis is rejected.
It is found that there is difference in the level of job satisfaction between public banks
and private banks regarding some factors like workload, employee empowerment,
supervision, salary offered to employees, performance appraisal, training and transfer
policy.
When it comes to remuneration, the employees in private banks are more satisfied than
the employees in public bank.
It is found that that the public sector banks employees are dissatisfied with the transfer
policy while private sector bank employees are satisfied with the transfer policy.
It is found that shows that the public banks employees are more satisfied with the
performance appraisal as compared to private sector bank employees.
It is found that that the public sector banks employees are satisfied with the amount of
responsibility as compared to private sector banks employees.
It is found that the employees of PSBs are more satisfied with the aspects of supervision
than the employees of PVSBs.
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FINDING RELATED TO JOB SATISFACTION AND PRODUCTIVITY
The old view that “A happy worker is a productive worker” does not clarify the complex
relationship between job satisfaction and productivity. High job satisfaction leads to
improved productivity, decreased turnover and less job stress. The private sector banks
productivity is higher than public sector banks. The job satisfaction is also higher in
private sector banks employees. So higher satisfaction leads to higher productivity.
SUGGESTIONS
The suggestions on the basis of the findings of the study are as follow:
SUGGESTIONS RELATING TO PUBLIC SECTORS BANKS
The suggestions related to public sector banks are as follow:
The public sector banks suffer from the dual control by RBI as well as government. The
government should make clear policy in what matter banks will follow govertment and
RBI.
The PSBs should gear up their appraisal systems in such a manner ensuring better control
over the defaulters.
The PSBs should bring operational efficiency and should diversify their activities into
non- traditional banking activities. They should concentrate on non-interest income
avenues. Diversification based on niches and core competences are more likely to be
successful. The strategy of offering the right kinds of product in the right market for
products rather than providing everything everywhere is important to achieve a
competitive advantage.
In order to raise productivity and profitability PSBs should spell turnover strategies,
income- oriented and cost-oriented strategies from time to time. Better management
information system, credit monitoring and cash management can result increaseing
productivity
The public sector banks must improve their credit lending policies so as to improve asset
quality and profitability.
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In PSBs, low compensation is the biggest de-motivator for the efficient employees. So it
is suggested that the pay should be linked to individual performance, group performance
and overall business result of the bank.
The public sector banks should evolve strategies for handling the recovery of NPAs.
The private banks have comparatively greater freedom in terms of recruitment, salary and
compensation. If possible same design of human resource should be followed by public
sector banks.
The public sector banks require substantial capital to support growth. Reserve Bank has
made an estimate of the additional capital requirements of domestic banks for full Basel
III implementation till March 2018. These estimates are based on two broad assumptions:
(i) increase in the risk weighted assets of twenty per cent p.a.; (ii) internal accrual of the
order of one per cent of risk weighted assets.
Banks should evolve a foolproof performance appraisal system covering the entire
spectrum of staff to obviate any feeling of discrimination and to instill confidence among
the employees.
The greater customer-orientation is the only way to retain customer loyalty and stay
ahead of competition. Public sector banks need to bring about total customer orientation
not only in their products/services but their policies and strategies should also be
customer focused.
The different committees related to public sector banks have enumerated a number of
problems relating to HRM in public sector banking such as over manning, low man
power productivity, indiscipline, restrictive practices, lack of management commitment
to training etc. Banks need to build a service culture using technology in a customer
friendly manner. This requires reorienting HRD strategies in public sector banks on an
urgent basis and banks need to emphasize right size, right skills and right attitude.
SUGGESTION RELATED TO BRANCH PRODUCTIVITY
The suggestions related to branch productivity are as follow:
The banks should encourage customers to carry out transaction on digital channels which
lead to improved customer retention and higher balances in accounts.
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To increase branch productivity the banks should allow and encourage customer to use
self –services machines like bulk note acceptors, passbook updation kiosk and check
deposit machines. This leads to reduce branch traction footfalls by 30-40%, lower
proportion of non-sales staff in the branches and customer can access the machines 24x7.
For better branch productivity a new thinking on branch design is required. Branches of
the future would be modular, paperless, with no back office, and with on the spot
fulfillment.
The banks have huge opportunity to use information analytics for credit assessment and
early warning systems. Credit processes need to be re–engineered with technology to
reduce response time. Banks with slow credit process have high NPA since best
customers get fed up and leave. Credit is a judgment decision and cannot be abdicated to
models. Capability and intuition of the credit cadre has to be enhanced through teaming
and apprenticeship. Use of gold as collateral for agriculture lending could double the
agriculture credit flow at very low NPA.
Customer services are create new challenges, to cope up with, technology will be the key
to reduce transaction costs, offering customized products and managing risks. This is
compelling banks to provide internet banking facilities and increasingly customers are
demanding fast, convenient and glitch free banking services.
SUGGESTIONS RELATING TO PRIVATE SECTORS BANKS
The suggestions related to private sector banks are as follow:
The old private sector banks should learn from new private sector banks. Their
productivity is higher than old private sector banks.
On the basis of my personal observation and interview of employees responsiveness,
empathy, tangibility of foreign banks was higher than private banks employees. So
private banks should consider it for better customer relationship.
SUGGESTIONS RELATING TO RELATING TO FOREIGN BANKS
The suggestions related to foreign banks are as follow:
The foreign banks have been operating in India as branches of the parent banks. The
domestic incorporation of foreign banks i.e. subsidiarisation is necessary.
The number of branches permitted each year to foreign banks has been higher than the
WTO commitments of twelve branches in a year. In addition, foreign banks in India are
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free to undertake any banking activity (e.g., wholesale, retail, investment banking,
foreign exchange, etc.) which is allowed to domestic banks. In Singapore, China and the
US, strict restrictions have been imposed on the kind of businesses that could be carried
out by foreign banks within their jurisdictions. During 2003-07, India allowed US-based
banks to open nineteen branches (excluding the off-site ATMs). But, in the same period,
the US did not allow a single Indian bank to open a branch or subsidiary or representative
office in its territory despite many requests made by public and private sector banks.
Under the India-Singapore Comprehensive Economic Cooperation Agreement (2005),
the RBI allowed market access to three Singaporean banks as per the agreement but the
Monetary Authority of Singapore refused to fulfill its time-bound commitment for
providing full bank license (Qualifying Full Bank status) to three Indian banks. These are
some of the important policy questions relating to foreign banks.
The most of branches of foreign banks are located in metropolitan areas and major Indian
cities where bulk of premium banking business is concentrated. It is distressing to note
that foreign banks such as Standard Chartered Bank and BNP Paribas have not yet
opened a single branch in the rural areas despite operating in India for more than 150
years. The foreign banks “cherry-pick” the most profitable businesses and affluent
customers residing in the metros and urban areas. The contribution of foreign banks in
the opening of “no frills” bank account under the financial inclusion program has been
abysmal, as documented in various RBI reports. Raghuram Rajan, the new Governor of
the Reserve Bank of India, announced that the RBI will soon issue new rules allowing a
more liberal entry of foreign banks in India. These are some of the important policy
questions which need to be addressed before issue new rules for foreign banks.
Several banks (including HSBC, UBS, JPMorgan Chase and Credit Suisse) have recently
paid billions of dollars in fines for their alleged role in Libor rate-fixing scandal, money
laundering and other corrupt practices. Should India give such banks a free run?
LEARNING FROM INTERNATIONAL EXPERIENCES: In South Korea, foreign
bank played an importantt role in building of short-term foreign borrowings which
induced financial fragility and risks in the Korean banking sector before and after the
2008 financial crisis. In Uganda, a rapid entry of foreign banks through acquisitions and
takeovers has led to a situation where rural areas remain under-banked and the bulk of
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bank credit goes to trade. In many Latin American countries such as Brazil, Mexico and
Chile, there was a considerable decline in competition in the aftermath of liberal entry of
foreign banks. Finally, we should not forget that the Indian banking system has remained
resilent in global crisis period; thanks to a limited presence of foreign banks, enlarged
state ownership of the banking system, and a relatively strong regulatory framework.
SUGGESTIONS RELATING TO JOB SATISFACTION
The suggestions related to job satisfaction are as follow:
Job satisfaction of bank employees should be evaluated periodically for evolving
dynamic and pragmatic policies for organization's growth and development.
Private Sector Banks should pay attention to the extent of direction employees receive
from their boss since they are exhibiting lower level of satisfaction in this regard.
Public Sector Banks can influence the satisfaction of their employees by giving the
attractive incentive such as pay increments and rewards.
Training and development programmes must be designed in such a manner that the
employees are able to get regular update knowledge and skills.
The work given to be assigned to the employee according to their competencies.
RECOMMENDATION FOR FURTHER RESEARCH
I recommend the following areas where future research may be conducted:
On the basis of present study and literature review I found that there is no bench marking
regarding employee productivity and branch productivity to compare performance of
banks. In future, researcher can work on study benchmarking of public, private and
foreign banks.
In future, researcher may study impact of non- performing assets (NPA) on employee
productivity and branch productivity.
In further, researcher may study impact of foreign banks entry on the performance of
domestic banks (public and private banks) regarding mode (Greenfield versus takeover)
and type (branch versus subsidiary) in India.
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