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c 

 
   
c 
Meaning :
ƠProductivity refers to the
capacity/efficiency of banks to produce
maximum output with the available input
resourcesơ

Productivity of banks has two facets:


 6ommercial Productivity

 Social Productivity
c    
ranch Productivity (Per ranch Indicators)
It shows how much the bank groups produce at
branch level. It is a tool to measure branch
efficiency.
 J   
:Max. in Foreign anks
378.03cr followed by NPSs 92.32
 6   
: Highest in Foreign anks
290.75cr followed by NPSs 65.76cr
    
: Highest in 668.77cr followed
by NPSs 158.12 cr
 u

    

 u
    

Ô   
ºear ank Rural Semi-
Semi- Urban Total
6ategory ranches Urban ranches ranches
ranches
Public 19440 10395 15730 45525
2000 anks

Private 1141 1549 1816 4506


anks

Foreign ------ 3 162 165


anks
c      
3abor Productivity (Per Employee Indicators)
It is the indicator of long term viability of banks which
shows contribution of an employee over the total output.
This ratio helps in checking whether the bank group is
under or over staffed.

 J   : Max. in Foreign anks


5.32cr followed by NPSs 4.96cr, poorer in SI & its
Associates 1.31cr.
 6   : Max. in Foreign anks 4.09cr,
poorer in SI & its Associates 0.64cr
    : Max. in Foreign anks
9.42cr, poorer in SI & its Associates 1.96cr
c      
!  c "  

 u

   
 u
   
 
     

 
 
c      
perational Productivity
It is the measure of financial efficiency which indicates
operational productivity as percentage of total assets.

 ×   ×    
 u
  :
Max. in PSs 8.73% followed by Foreign anks 7.75%.
 
  
 u
  : Max. in
Foreign anks 2.97% followed by Nationalized banks
2.93%.
  c   
 Ô ×   ×    
 
Ô 
u
  : Max. in Foreign anks 2.72%
followed by PSs 1.96%
    
 u
  :
Max. in Foreign anks 2.26% followed by
Nationalized banks 2.13%.
 Ô   
 u
 
: Max. in Foreign anks 1.33% followed by
PSs banks 1.04%.
      
 The PSs should opt for computerization & IT
for their survival & to compete with other new
private sector banks and foreign banks along
with the objective of social banking.
 Supervisory and regulatory offices should be
made responsible for and accountable for lapses
on the part of branches under their control
 In view of huge establishment costs the VRS
should be adopted to void these costs of
overstaffing.
      
 Policies and programmes should be
revised.
 Political interference should be eliminated
in order to make PSs more effective.
 Easy terms for the sanction of priority
sector advances should be introduced.
 More functional autonomy should be given
to PSs.
Ñ  
Î Saveeta Saggar, 6ommercial anks In
India
Î R.P.Nainta, anking System
Î R.K. Uppal, anking Sector reforms in
India

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