Staff productivity growth slows in public sector banks

The growth in productivity of the 7,49,169 employees of the 27 public sector banks has slowed down in the financial year 2004.

PSU banks posted a 34.2 per cent rise in employee productivity in fiscal 2004 compared with the 37.1 per cent rise in fiscal 2003 and a 67.8 per cent rise in fiscal 2002.

However, the operating profit per employee in these banks rose from Rs 3.93 lakh in FY 2002-03 to Rs 5.27 lakh in FY 2003-04.

Vijaya Bank, with a 102 per cent rise in productivity per employee, topped the growth chart. Its operating profit per employee surged from Rs 3.69 lakh in 2002-03 to Rs 7.45 lakh in 2003-04.

Vijaya Banks' operating profit zoomed by 100 per cent to Rs 865.64 crore in fiscal 2004, while the number of employees stood reduced at 11,624 from 11,723.

In absolute term, Oriental Bank of Commerce (OBC) tops the list. OBC posted the highest Rs 11.27 lakh productivity per employee in fiscal 2004 compared with Rs 8.61 lakh in 2003.

On the growth chart, Syndicate Bank ranked second with 72.3 per cent rise in productivity. Its operating profit per employee increased from Rs 2.43 lakh to Rs 4.19 lakh.

Allahabad Bank ranked third with 71.9 per cent rise in productivity "" up from Rs 2.64 lakh to Rs 4.54 lakh, followed by Indian Overseas Bank (68.5 per cent), Central Bank (66.4 per cent), State Bank of Saurashtra (57.2 per cent), State Bank of Bikaner & Jaipur (56.4 per cent), State Bank of Travancore (54.0 per cent), Uco Bank (51.6 per cent) and Canara Bank (51.1 per cent).

In absolute term, State Bank of Patiala follows OBC with an operating profit per employee of Rs 8.61 lakh. Corporation Bank is ranked third (Rs 8.45 lakh), State Bank of Indore fourth (Rs 8.12 lakh) and State Bank of Hyderabad is ranked fifth (Rs 7.64 lakh).

Punjab & Sind Bank had the lowest productivity of Rs 1.52 lakh "" down 47 per cent from Rs 2.86 lakh in fiscal 2003 "" among the 27 public sector banks (PSBs).

Of the 27 PSBs, business (ie. deposits plus advances) per employee rose from Rs 215 lakh to Rs 248 lakh. OBC posted the highest (Rs 416 lakh) business per employee, followed by Corporation Bank (Rs 345 lakh), Union Bank (Rs 312 lakh) and State Bank of Patiala (Rs 305 lakh).